IC 36-7-14-1 Application of chapter; jurisdiction in excluded cities that elect to
be governed by this chapter
Sec. 1. (a) This chapter applies to all units except:
(1) counties having a consolidated city, and units in those
counties, except those units described in subsection (b); and
(2) townships.
(b) This chapter applies to an excluded city (as defined in
IC 36-3-1-7) that adopts an ordinance electing to be governed by this
chapter and establishes a redevelopment commission under section
3 of this chapter. Upon the adoption of an ordinance under this
subsection:
(1) an area needing redevelopment;
(2) an economic development area; or
(3) an allocation area previously established under
IC 36-7-15.1-37 through IC 36-7-15.1-58;
continues in full force and effect as if the area had been created
under this chapter.
(c) An:
(1) area needing redevelopment;
(2) economic development area; or
(3) allocation area previously established under IC 36-7-15.1-37
through IC 36-7-15.1-58;
described in subsection (b) is subject to the jurisdiction of the
redevelopment commission established under section 3 of this
chapter and is not subject to the jurisdiction of the commission (as
defined in IC 36-7-15.1-37).As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.310, SEC.82; P.L.190-2005, SEC.5; P.L.1-2006, SEC.564.

IC 36-7-14-2 Declaration of public purpose; opportunities for redevelopment by
private enterprise
Sec. 2. (a) The clearance, replanning, and redevelopment of areas
needing redevelopment under this chapter are public uses and

purposes for which public money may be spent and private property
may be acquired.
(b) Each unit shall, to the extent feasible under this chapter and
consistent with the needs of the unit as a whole, afford a maximum
opportunity for rehabilitation or redevelopment of areas by private
enterprise.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.185-2005,
SEC.8.

IC 36-7-14-2.5 Economic development areas; public functions, uses, and purposes;
liberal construction
Sec. 2.5. (a) The assessment, planning, replanning, remediation,
development, and redevelopment of economic development areas:
(1) are public and governmental functions that cannot be
accomplished through the ordinary operations of private
enterprise because of:
(A) the necessity for requiring the proper use of the land so
as to best serve the interests of the county and its citizens;
and
(B) the costs of these projects;
(2) will:
(A) benefit the public health, safety, morals, and welfare;
(B) increase the economic well-being of the unit and the
state; and
(C) serve to protect and increase property values in the unit
and the state; and
(3) are public uses and purposes for which public money may
be spent and private property may be acquired.
(b) This section and sections 41 and 43 of this chapter shall be
liberally construed to carry out the purposes of this section.As added by P.L.380-1987(ss), SEC.8; P.L.393-1987(ss), SEC.2.
Amended by P.L.192-1988, SEC.1; P.L.221-2007, SEC.30.

IC 36-7-14-3 Redevelopment departments and commissions; creation; taxing
districts
Sec. 3. (a) A unit may establish a department of redevelopment
controlled by a board of five (5) members to be known as
"__________ Redevelopment Commission", designating the name of
the municipality or county. However, in the case of a county, the
county executive may adopt an ordinance providing that the county
redevelopment commission consists of seven (7) members.
(b) Subject to section 3.5 of this chapter, all of the territory within
the corporate boundaries of a municipality constitutes a taxing
district for the purpose of levying and collecting special benefit taxes
for redevelopment purposes as provided in this chapter. Subject to
section 3.5 of this chapter, all of the territory in a county, except that
within a municipality that has a redevelopment commission,
constitutes a taxing district for a county.

(c) All of the taxable property within a taxing district is
considered to be benefited by redevelopment projects carried out
under this chapter to the extent of the special taxes levied under this
chapter.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.35-1990,
SEC.51; P.L.190-2005, SEC.6.

IC 36-7-14-3.5 Annexation of area in county; redevelopment districts; property
tax proceeds; outstanding obligations; special tax
Sec. 3.5. (a) This section applies whenever:
(1) a municipality with a redevelopment district is annexing an
area in a county; or
(2) a municipality establishes a redevelopment district;
after the county in which the municipality is located has established
a redevelopment district.
(b) This subsection applies whenever:
(1) the area to be annexed or to be included in the municipality's
district includes all or part of an allocation area established by
a county redevelopment commission for purposes of section 39
of this chapter; and
(2) bonds or lease obligations are outstanding that are payable
by the county redevelopment commission in whole or in part
from property tax proceeds allocated from the allocation area
under section 39 of this chapter.
The county redevelopment commission shall continue to receive
allocations of property tax proceeds from the area annexed or
included in the municipality's district for the commission's allocation
fund as if the annexation or establishment of the district had not
occurred as long as any bonds or lease obligations payable by the
county from allocated property tax proceeds are outstanding. After
the final effectiveness of the annexation or the establishment of the
municipality's district, the county redevelopment commission may
not issue bonds or enter into leases that are payable from allocated
property tax proceeds from the part of the allocation area annexed or
included unless the legislative body of the municipality adopts an
ordinance approving the issuance and this use of allocated property
tax proceeds from that part of the allocation area.
(c) This subsection applies whenever bonds or lease obligations
are outstanding that are payable by the county redevelopment
commission in whole or in part from the special tax levied under
section 27 of this chapter. The county redevelopment commission
shall continue to levy a special tax on property in the area annexed
or included in the municipality's district as long as any bonds or lease
obligations payable by the county are outstanding. After the final
effectiveness of the annexation or the establishment of the
municipality's district, the county redevelopment commission may
not levy the special tax for new bonds or lease obligations in the
annexed or included area unless the legislative body of the
municipality adopts an ordinance approving the levy.

IC 36-7-14-6.1 Commissioners; appointment; nonvoting adviser
Sec. 6.1. (a) The five (5) commissioners for a municipal
redevelopment commission shall be appointed as follows:
(1) Three (3) shall be appointed by the municipal executive.
(2) Two (2) shall be appointed by the municipal legislative
body.
The municipal executive shall also appoint an individual to serve as
a nonvoting adviser to the redevelopment commission beginning July
1, 2008.
(b) The commissioners for a county redevelopment commission
that has five (5) members shall be appointed as follows:
(1) The county executive shall appoint all the members whose
terms of office begin before January 1, 2008.
(2) For terms of office beginning after December 31, 2007, the
county executive shall appoint three (3) members, and the
county fiscal body shall appoint two (2) members.
The county executive shall also appoint an individual to serve as a
nonvoting adviser to the redevelopment commission beginning July
1, 2008.
(c) The commissioners for a county redevelopment commission
that has seven (7) members shall be appointed as follows:
(1) The county executive shall appoint all the members whose
terms of office begin before January 1, 2008.
(2) For terms of office beginning after December 31, 2007, the
county executive shall appoint four (4) members, and the
county fiscal body shall appoint three (3) members.
The county executive shall also appoint an individual to serve as a
nonvoting adviser to the redevelopment commission beginning July
1, 2008.
(d) A nonvoting adviser appointed under this section:
(1) must also be a member of the school board of a school
corporation that includes all or part of the territory served by
the redevelopment commission;
(2) is not considered a member of the redevelopment
commission for purposes of this chapter but is entitled to attend

and participate in the proceedings of all meetings of the
redevelopment commission;
(3) is not entitled to a salary, per diem, or reimbursement of
expenses;
(4) serves for a term of two (2) years and until a successor is
appointed; and
(5) serves at the pleasure of the entity that appointed the
nonvoting adviser.As added by Acts 1981, P.L.310, SEC.83. Amended by P.L.190-2005,
SEC.7; P.L.146-2008, SEC.723.

IC 36-7-14-7 Commissioners; terms of office; vacancies; oaths; bonds;
qualifications; reimbursement for expenses; compensation
Sec. 7. (a) Each redevelopment commissioner shall serve for one
(1) year from the first day of January after his appointment and until
his successor is appointed and has qualified, except that the original
commissioners shall serve from the date of their appointment until
the first day of January in the second year after their appointment. If
a vacancy occurs, a successor shall be appointed in the same manner
as the original commissioner, and the successor shall serve for the
remainder of the vacated term.
(b) Each redevelopment commissioner, before beginning his
duties, shall take and subscribe an oath of office in the usual form,
to be endorsed on the certificate of his appointment, which shall be
promptly filed with the clerk for the unit that he serves.
(c) Each redevelopment commissioner, before beginning his
duties, shall execute a bond payable to the state, with surety to be
approved by the executive of the unit. The bond must be in the penal
sum of fifteen thousand dollars ($15,000) and must be conditioned
on the faithful performance of the duties of his office and the
accounting for all monies and property that may come into his hands
or under his control. The cost of the bond shall be paid by the special
taxing district.
(d) A redevelopment commissioner must be at least eighteen (18)
years of age, and must be a resident of the unit that he serves.
(e) If a commissioner ceases to be qualified under this section, he
forfeits his office.
(f) Except as provided in subsection (g), redevelopment
commissioners are not entitled to salaries but are entitled to
reimbursement for expenses necessarily incurred in the performance
of their duties.
(g) A redevelopment commissioner who does not otherwise hold
a lucrative office for the purpose of Article 2, Section 9 of the
Indiana Constitution may receive:
(1) a salary; or
(2) a per diem;
and is entitled to reimbursement for expenses necessarily incurred in
the performance of the redevelopment commissioner's duties.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,

IC 36-7-14-8 Commission; meetings; officers; treasurer; rules; quorum;
approval of actions
Sec. 8. (a) The redevelopment commissioners shall hold a meeting
for the purpose of organization not later than thirty (30) days after
they are appointed and, after that, each year on the first day in
January that is not a Saturday, a Sunday, or a legal holiday. They
shall choose one (1) of their members as president, another as vice
president, and another as secretary. These officers shall perform the
duties usually pertaining to their offices and shall serve from the date
of their election until their successors are elected and qualified.
(b) The redevelopment commission may appoint a treasurer who
need not be a member of the redevelopment commission. The
redevelopment commission may provide for the payment of
compensation to a treasurer who is not a member of the
redevelopment commission. Notwithstanding any other provision of
this chapter, the treasurer has charge over and is responsible for the
administration, investment, and disbursement of all funds and
accounts of the redevelopment commission in accordance with the
requirements of this chapter. However, the treasurer may not perform
any duties of the fiscal officer or any other officer of the unit that are
prescribed by section 24 of this chapter or by any provisions of this
chapter that pertain to the issuance and sale of bonds, notes, or
warrants of the special taxing district.
(c) The redevelopment commissioners may adopt the rules and
bylaws they consider necessary for the proper conduct of their
proceedings, the carrying out of their duties, and the safeguarding of
the money and property placed in their custody by this chapter. In
addition to the annual meeting, the commissioners may, by resolution
or in accordance with their rules and bylaws, prescribe the date and
manner of notice of other regular or special meetings.
(d) This subsection does not apply to a county redevelopment
commission that consists of seven (7) members. Three (3) of the
redevelopment commissioners constitute a quorum, and the
concurrence of three (3) commissioners is necessary to authorize any
action.
(e) This subsection applies only to a county redevelopment
commission that consists of seven (7) members. Four (4) of the
redevelopment commissioners constitute a quorum, and the
concurrence of four (4) commissioners is necessary to authorize any
action.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.192-1988,
SEC.4; P.L.41-1992, SEC.4; P.L.18-1992, SEC.24; P.L.190-2005,
SEC.8.

IC 36-7-14-9 Commissioners; removal from office
Sec. 9. (a) The municipal executive or municipal legislative body
that appointed a municipal redevelopment commissioner may
summarily remove that commissioner from office at any time.
(b) The county executive may summarily remove a county
redevelopment commissioner from office at any time.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.310, SEC.85.

IC 36-7-14-10 Commissioners and nonvoting advisers; pecuniary interests in
property and transactions
Sec. 10. (a) A redevelopment commissioner or a nonvoting
adviser appointed under section 6.1 of this chapter may not have a
pecuniary interest in any contract, employment, purchase, or sale
made under this chapter. However, any property required for
redevelopment purposes in which a commissioner or nonvoting
adviser has a pecuniary interest may be acquired, but only by gift or
condemnation.
(b) A transaction made in violation of this section is void.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.310, SEC.86; P.L.146-2008, SEC.724.

IC 36-7-14-11 Duties of commission
Sec. 11. The redevelopment commission shall:
(1) investigate, study, and survey areas needing redevelopment
within the corporate boundaries of the unit;
(2) investigate, study, determine, and, to the extent possible,
combat the causes of areas needing redevelopment;
(3) promote the use of land in the manner that best serves the
interests of the unit and its inhabitants;
(4) cooperate:
(A) with the departments and agencies of:
(i) the unit; and
(ii) other governmental entities; and
(B) with:
(i) public instrumentalities; and
(ii) public corporate bodies;
created by state law;
in the manner that best serves the purposes of this chapter;
(5) make findings and reports on their activities under this
section, and keep those reports open to inspection by the public
at the offices of the department;
(6) select and acquire the areas needing redevelopment to be
redeveloped under this chapter; and
(7) replan and dispose of the areas needing redevelopment in
the manner that best serves the social and economic interests of
the unit and its inhabitants.

IC 36-7-14-12.2 Powers of commission
Sec. 12.2. (a) The redevelopment commission may do the
following:
(1) Acquire by purchase, exchange, gift, grant, condemnation,
or lease, or any combination of methods, any personal property
or interest in real property needed for the redevelopment of
areas needing redevelopment that are located within the
corporate boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract,
or other instrument), exchange, lease, rent, or otherwise dispose
of property acquired for use in the redevelopment of areas
needing redevelopment on the terms and conditions that the
commission considers best for the unit and its inhabitants.
(3) Sell, lease, or grant interests in all or part of the real
property acquired for redevelopment purposes to any other
department of the unit or to any other governmental agency for
public ways, levees, sewerage, parks, playgrounds, schools, and
other public purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Enter on or into, inspect, investigate, and assess real
property and structures acquired or to be acquired for
redevelopment purposes to determine the existence, source,
nature, and extent of any environmental contamination,
including the following:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(6) Remediate environmental contamination, including the
following, found on any real property or structures acquired for
redevelopment purposes:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(7) Repair and maintain structures acquired for redevelopment
purposes.
(8) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment
purposes.

(9) Survey or examine any land to determine whether it should
be included within an area needing redevelopment to be
acquired for redevelopment purposes and to determine the value
of that land.
(10) Appear before any other department or agency of the unit,
or before any other governmental agency in respect to any
matter affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any area needing redevelopment within the jurisdiction
of the commissioners.
(11) Institute or defend in the name of the unit any civil action.
(12) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and
perform the duties of the department of redevelopment.
(13) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit in the manner
prescribed by section 20 of this chapter.
(14) Appoint an executive director, appraisers, real estate
experts, engineers, architects, surveyors, and attorneys.
(15) Appoint clerks, guards, laborers, and other employees the
commission considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(16) Prescribe the duties and regulate the compensation of
employees of the department of redevelopment.
(17) Provide a pension and retirement system for employees of
the department of redevelopment by using the Indiana public
employees' retirement fund or a retirement plan approved by the
United States Department of Housing and Urban Development.
(18) Discharge and appoint successors to employees of the
department of redevelopment subject to subdivision (15).
(19) Rent offices for use of the department of redevelopment,
or accept the use of offices furnished by the unit.
(20) Equip the offices of the department of redevelopment with
the necessary furniture, furnishings, equipment, records, and
supplies.
(21) Expend, on behalf of the special taxing district, all or any
part of the money of the special taxing district.
(22) Contract for the construction of:
(A) local public improvements (as defined in IC 36-7-14.5-6)
or structures that are necessary for redevelopment of areas
needing redevelopment or economic development within the
corporate boundaries of the unit; or
(B) any structure that enhances development or economic
development.
(23) Contract for the construction, extension, or improvement
of pedestrian skyways.
(24) Accept loans, grants, and other forms of financial
assistance from the federal government, the state government,

a municipal corporation, a special taxing district, a foundation,
or any other source.
(25) Provide financial assistance (including grants and loans) to
enable individuals and families to purchase or lease residential
units within the district. However, financial assistance may be
provided only to individuals and families whose income is at or
below the unit's median income for individuals and families,
respectively.
(26) Provide financial assistance (including grants and loans) to
neighborhood development corporations to permit them to:
(A) provide financial assistance for the purposes described
in subdivision (25); or
(B) construct, rehabilitate, or repair commercial property
within the district.
(27) Require as a condition of financial assistance to the owner
of a multiple unit residential structure that any of the units
leased by the owner must be leased:
(A) for a period to be determined by the commission, which
may not be less than five (5) years;
(B) to families whose income does not exceed eighty percent
(80%) of the unit's median income for families; and
(C) at an affordable rate.
(b) Conditions imposed by the commission under subsection
(a)(27) remain in force throughout the period determined under
subsection (a)(27)(A), even if the owner sells, leases, or conveys the
property. The subsequent owner or lessee is bound by the conditions
for the remainder of the period.
(c) As used in this section, "pedestrian skyway" means a
pedestrian walkway within or outside of the public right-of-way and
through and above public or private property and buildings, including
all structural supports required to connect skyways to buildings or
buildings under construction. Pedestrian skyways constructed,
extended, or improved over or through public or private property
constitute public property and public improvements, constitute a
public use and purpose, and do not require vacation of any public
way or other property.
(d) All powers that may be exercised under this chapter by the
redevelopment commission may also be exercised by the
redevelopment commission in carrying out its duties and purposes
under IC 36-7-14.5.As added by P.L.1-1990, SEC.363. Amended by P.L.35-1990,
SEC.53; P.L.185-2005, SEC.10; P.L.221-2007, SEC.32.

IC 36-7-14-12.3 Construction contracts with redevelopment commission;
subcontractors; wage scales
Sec. 12.3. IC 5-16-7 applies to:
(1) a person that enters into a contract with a redevelopment
commission to perform construction work referred to in section
12.2(a)(4), 12.2(a)(7), 12.2(a)(22), or 12.2(a)(23) of this

chapter; and
(2) a subcontractor of a person described in subdivision (1);
with respect to the construction work referred to in subdivision (1).As added by P.L.35-1990, SEC.54. Amended by P.L.221-2007,
SEC.33.

IC 36-7-14-13 Annual reports; contents
Sec. 13. (a) Within thirty (30) days after the close of each
calendar year, the redevelopment commissioners shall file with the
unit's executive a report setting out their activities during the
preceding calendar year.
(b) The report of the commissioners of a municipal redevelopment
commission must show the names of the then qualified and acting
commissioners, the names of the officers of that body, the number of
regular employees and their fixed salaries or compensation, the
amount of the expenditures made during the preceding year and their
general purpose, the amount of funds on hand at the close of the
calendar year, and other information necessary to disclose the
activities of the commissioners and the results obtained.
(c) The report of the commissioners of a county redevelopment
commission must show all the information required by subsection
(b), plus the names of any commissioners appointed to or removed
from office during the preceding calendar year.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.310, SEC.88.

IC 36-7-14-14 Contracts to perform powers and duties
Sec. 14. (a) A county may contract with a city within the county
to have any of the duties and powers listed in sections 11 and 12.2 of
this chapter performed by the redevelopment commission of the city.
(b) A city may contract with the county in which it is located to
have any of the duties and powers listed in sections 11 and 12.2 of
this chapter performed by the redevelopment commission of the
county.
(c) A city or county may contract with:
(1) a public instrumentality; or
(2) a public corporate body;
created by state law to have the powers listed in section 12.2(a)(4)
through 12.2(a)(7) of this chapter performed by the public
instrumentality or public corporate body.
(d) A contract made under this section must be for a stated and
limited period and may be renewed.
(e) Whenever a city official acts under a contract made under this
section, or whenever permits or other writings are used under such
a contract, the action or use must be in the name of the county
redevelopment commission.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.3-1989,
SEC.229; P.L.1-1990, SEC.364; P.L.221-2007, SEC.34.

IC 36-7-14-15 Data concerning areas in need of redevelopment; declaratory
resolution; amendment to resolution or plan
Sec. 15. (a) Whenever the redevelopment commission finds that:
(1) an area in the territory under its jurisdiction is an area
needing redevelopment;
(2) the conditions described in IC 36-7-1-3 cannot be corrected
in the area by regulatory processes or the ordinary operations of
private enterprise without resort to this chapter;
(3) the public health and welfare will be benefited by:
(A) the acquisition and redevelopment of the area under this
chapter as a redevelopment project area; or
(B) the amendment of the resolution or plan, or both, for an
existing redevelopment project area; and
(4) in the case of an amendment to the resolution or plan for an
existing redevelopment project area:
(A) the amendment is reasonable and appropriate when
considered in relation to the original resolution or plan and
the purposes of this chapter;
(B) the resolution or plan, with the proposed amendment,
conforms to the comprehensive plan for the unit; and
(C) except as provided by subsection (f), if the amendment
enlarges the boundaries of the area, the existing area does
not generate sufficient revenue to meet the financial
obligations of the original project;
the commission shall cause to be prepared the data described in
subsection (b).
(b) After making a finding under subsection (a), the commission
shall cause to be prepared:
(1) maps and plats showing:
(A) the boundaries of the area in which property would be
acquired for, or otherwise affected by, the establishment of
a redevelopment project area or the amendment of the
resolution or plan for an existing area;
(B) the location of the various parcels of property, streets,
alleys, and other features affecting the acquisition, clearance,
remediation, replatting, replanning, rezoning, or
redevelopment of the area, indicating any parcels of property
to be excluded from the acquisition or otherwise excluded
from the effects of the establishment of the redevelopment
project area or the amendment of the resolution or plan for
an existing area; and
(C) the parts of the area acquired, if any, that are to be
devoted to public ways, levees, sewerage, parks,
playgrounds, and other public purposes under the
redevelopment plan;
(2) lists of the owners of the various parcels of property
proposed to be acquired for, or otherwise affected by, the
establishment of an area or the amendment of the resolution or
plan for an existing area; and
(3) an estimate of the costs, if any, to be incurred for the
acquisition and redevelopment of property.
(c) This subsection applies to the initial establishment of a
redevelopment project area. After completion of the data required by
subsection (b), the redevelopment commission shall adopt a
resolution declaring that:
(1) the area needing redevelopment is a menace to the social
and economic interest of the unit and its inhabitants;
(2) it will be of public utility and benefit to acquire the area and
redevelop it under this chapter; and
(3) the area is designated as a redevelopment project area for
purposes of this chapter.
The resolution must state the general boundaries of the
redevelopment project area, and that the department of
redevelopment proposes to acquire all of the interests in the land
within the boundaries, with certain designated exceptions, if there are
any.
(d) This subsection applies to the amendment of the resolution or
plan for an existing redevelopment project area. After completion of
the data required by subsection (b), the redevelopment commission
shall adopt a resolution declaring that:
(1) except as provided by subsection (f), if the amendment
enlarges the boundaries of the area, the existing area does not
generate sufficient revenue to meet the financial obligations of
the original project;
(2) it will be of public utility and benefit to amend the
resolution or plan for the area; and
(3) any additional area to be acquired under the amendment is
designated as part of the existing redevelopment project area for
purposes of this chapter.
The resolution must state the general boundaries of the
redevelopment project area, including any changes made to those
boundaries by the amendment, and describe the activities that the
department of redevelopment is permitted to take under the
amendment, with any designated exceptions.
(e) For the purpose of adopting a resolution under subsection (c)
or (d), it is sufficient to describe the boundaries of the redevelopment
project area by its location in relation to public ways or streams, or
otherwise, as determined by the commissioners. Property excepted
from the application of a resolution may be described by street
numbers or location.
(f) The redevelopment commission is not required to make the
finding and declaration described in subsections (a)(4)(C) and (d)(1)
concerning the enlargement of the boundaries of an existing
redevelopment project area if, before the adoption of the resolution
under subsection (d), the Indiana economic development corporation
issues a finding approving the enlargement of the boundaries. Before
issuing a finding under this subsection, the Indiana economic
development corporation must consider whether the enlargement of
the boundaries will:
(1) lead to increased investment in Indiana;
(2) foster job creation or job retention in Indiana;
(3) have a positive impact on the unit in which the
redevelopment project area is located; or
(4) otherwise benefit the people of Indiana by increasing
opportunities for employment in Indiana and strengthening the
economy of Indiana.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.35-1990,
SEC.55; P.L.185-2005, SEC.11; P.L.221-2007, SEC.35;
P.L.146-2008, SEC.725.

IC 36-7-14-15.5 Redevelopment project areas in certain counties; inclusion of
additional areas outside boundaries
Sec. 15.5. (a) This section applies to a county having a population
of more than two hundred thousand (200,000) but less than three
hundred thousand (300,000).
(b) In adopting a declaratory resolution under section 15 of this
chapter, a redevelopment commission may include a provision
stating that the redevelopment project area is considered to include
one (1) or more additional areas outside the boundaries of the
redevelopment project area if the redevelopment commission makes
the following findings and the requirements of subsection (c) are
met:
(1) One (1) or more taxpayers presently located within the
boundaries of the redevelopment project area are expected
within one (1) year to relocate all or part of their operations
outside the boundaries of the redevelopment project area and
have expressed an interest in relocating all or part of their
operations within the boundaries of an additional area.
(2) The relocation described in subdivision (1) will contribute
to the continuation of the conditions described in IC 36-7-1-3 in
the redevelopment project area.
(3) For purposes of this section, it will be of public utility and
benefit to include the additional areas as part of the
redevelopment project area.
(c) Each additional area must be designated by the redevelopment
commission as a redevelopment project area or an economic
development area under this chapter.
(d) Notwithstanding section 3 of this chapter, the additional areas
shall be considered to be a part of the redevelopment special taxing
district under the jurisdiction of the redevelopment commission. Any
excess property taxes that the commission has determined may be
paid to taxing units under section 39(b)(3) of this chapter shall be
paid to the taxing units from which the excess property taxes were
derived. All powers of the redevelopment commission authorized
under this chapter may be exercised by the redevelopment
commission in additional areas under its jurisdiction.
(e) The declaratory resolution must include a statement of the
general boundaries of each additional area. However, it is sufficient

to describe those boundaries by location in relation to public ways,
streams, or otherwise, as determined by the commissioners.
(f) The declaratory resolution may include a provision with
respect to the allocation and distribution of property taxes with
respect to one (1) or more of the additional areas in the manner
provided in section 39 of this chapter. If the redevelopment
commission includes such a provision in the resolution, allocation
areas in the redevelopment project area and in the additional areas
considered to be part of the redevelopment project area shall be
considered a single allocation area for purposes of this chapter.
(g) The additional areas must be located within the same county
as the redevelopment project area but are not otherwise required to
be within the jurisdiction of the redevelopment commission, if the
redevelopment commission obtains the consent by ordinance of:
(1) the county legislative body, for each additional area located
within the unincorporated part of the county; or
(2) the legislative body of the city or town affected, for each
additional area located within a city or town.
In granting its consent, the legislative body shall approve the plan of
development or redevelopment relating to the additional area.
(h) A declaratory resolution previously adopted may be amended
to include a provision to include additional areas as set forth in this
section and an allocation provision under section 39 of this chapter
with respect to one (1) or more of the additional areas in accordance
with sections 15, 16, and 17 of this chapter.
(i) The redevelopment commission may amend the allocation
provision of a declaratory resolution in accordance with sections 15,
16, and 17 of this chapter to change the assessment date that
determines the base assessed value of property in the allocation area
to any assessment date following the effective date of the allocation
provision of the declaratory resolution. Such a change may relate to
the assessment date that determines the base assessed value of that
portion of the allocation area that is located in the redevelopment
project area alone, that portion of the allocation area that is located
in an additional area alone, or the entire allocation area.As added by P.L.170-1990, SEC.1. Amended by P.L.12-1992,
SEC.169; P.L.185-2005, SEC.12; P.L.146-2008, SEC.726.

IC 36-7-14-16 Approval of resolutions and plans by unit
Sec. 16. (a) This subsection does not apply to the redevelopment
commission of an excluded city described in section 1(b) of this
chapter. After adoption under section 15 of this chapter of a
resolution that designates a redevelopment project area or amends
the resolution or plan for an existing area, the redevelopment
commission shall submit the resolution and supporting data to the

plan commission of the unit, or if there is no plan commission, then
to the body charged with the duty of developing a general plan for
the unit, if there is such a body. The plan commission may determine
whether the resolution and the redevelopment plan conform to the
plan of development for the unit and approve or disapprove the
resolution and plan proposed. The redevelopment commission may
amend or modify the resolution and proposed plan in order to
conform them to the requirements of the plan commission. The plan
commission shall issue its written order approving or disapproving
the resolution and redevelopment plan, and may, with the consent of
the redevelopment commission, rescind or modify that order.
(b) This subsection does not apply to the redevelopment
commission of an excluded city described in section 1(b) of this
chapter. The redevelopment commission may not proceed with:
(1) the acquisition of a redevelopment project area; or
(2) the implementation of an amendment to the resolution or
plan for an existing redevelopment project area;
until the approving order of the plan commission is issued and
approved by the municipal legislative body or county executive.
(c) In determining the location and extent of a redevelopment
project area proposed to be acquired for redevelopment, the
redevelopment commission and the plan commission of the unit shall
give consideration to transitional and permanent provisions for
adequate housing for the residents of the area who will be displaced
by the redevelopment project.
(d) After adoption under section 15 of this chapter of a resolution
that designates a redevelopment project area or amends the
resolution or plan for an existing area, a redevelopment commission
in an excluded city that is exempt from the requirements of
subsections (a) and (b) shall submit the resolution and supporting
data to the municipal legislative body of the excluded city. The
municipal legislative body may:
(1) determine if the resolution and the redevelopment plan
conform to the plan of development for the unit; and
(2) approve or disapprove the resolution and plan proposed.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.190-2005,
SEC.9; P.L.185-2005, SEC.13; P.L.1-2006, SEC.565; P.L.146-2008,
SEC.727.

IC 36-7-14-17 Notice and hearing
Sec. 17. (a) After receipt of the written order of approval of the
plan commission and approval of the municipal legislative body or
county executive, the redevelopment commission shall publish notice
of the adoption and substance of the resolution in accordance with
IC 5-3-1. The notice must:
(1) state that maps and plats have been prepared and can be
inspected at the office of the department; and
(2) name a date when the commission will:
(A) receive and hear remonstrances and objections from

persons interested in or affected by the proceedings
pertaining to the proposed project or other actions to be
taken under the resolution; and
(B) determine the public utility and benefit of the proposed
project or other actions.
All persons affected in any manner by the hearing, including all
taxpayers of the special taxing district, shall be considered notified
of the pendency of the hearing and of subsequent acts, hearings,
adjournments, and orders of the commission by the notice given
under this section.
(b) A copy of the notice of the hearing on the resolution shall be
filed in the office of the unit's plan commission, board of zoning
appeals, works board, park board, and building commissioner, and
any other departments, bodies, or officers of the unit having to do
with unit planning, variances from zoning ordinances, land use, or
the issuance of building permits. These agencies and officers shall
take notice of the pendency of the hearing and, until the commission
confirms, modifies and confirms, or rescinds the resolution, or the
confirmation of the resolution is set aside on appeal, may not:
(1) authorize any construction on property or sewers in the area
described in the resolution, including substantial modifications,
rebuilding, conversion, enlargement, additions, and major
structural improvements; or
(2) take any action regarding the zoning or rezoning of property,
or the opening, closing, or improvement of streets, alleys, or
boulevards in the area described in the resolution.
This subsection does not prohibit the granting of permits for ordinary
maintenance or minor remodeling, or for changes necessary for the
continued occupancy of buildings in the area.
(c) If the resolution to be considered at the hearing includes a
provision establishing or amending an allocation provision under
section 39 of this chapter, the redevelopment commission shall file
the following information with each taxing unit that is wholly or
partly located within the allocation area:
(1) A copy of the notice required by subsection (a).
(2) A statement disclosing the impact of the allocation area,
including the following:
(A) The estimated economic benefits and costs incurred by
the allocation area, as measured by increased employment
and anticipated growth of real property assessed values.
(B) The anticipated impact on tax revenues of each taxing
unit.
The redevelopment commission shall file the information required by
this subsection with the officers of the taxing unit who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 at least
ten (10) days before the date of the hearing.
(d) At the hearing, which may be adjourned from time to time, the
redevelopment commission shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence

presented, the commission shall take final action determining the
public utility and benefit of the proposed project or other actions to
be taken under the resolution, and confirming, modifying and
confirming, or rescinding the resolution. The final action taken by
the commission shall be recorded and is final and conclusive, except
that an appeal may be taken in the manner prescribed by section 18
of this chapter.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.45, SEC.29; P.L.38-1988, SEC.8; P.L.18-1992, SEC.25;
P.L.25-1995, SEC.83; P.L.146-2008, SEC.728.

IC 36-7-14-17.5 Notice and hearing; amendment of resolution or plan; procedure
Sec. 17.5. (a) In addition to the requirements of section 17 of this
chapter, if the resolution or plan for an existing redevelopment
project area is proposed to be amended in a way that changes:
(1) parts of the area that are to be devoted to a public way,
levee, sewerage, park, playground, or other public purposes;
(2) the proposed use of the land in the area; or
(3) requirements for rehabilitation, building requirements,
proposed zoning, maximum densities, or similar requirements;
the commission must, at least ten (10) days before the public hearing
under section 17 of this chapter, send the notice required by section
17 of this chapter by first class mail to affected neighborhood
associations.
(b) In addition to the requirements of section 17 of this chapter,
if the resolution or plan for an existing redevelopment project area
is proposed to be amended in a way that:
(1) enlarges the boundaries of the area; or
(2) adds one (1) or more parcels to the list of parcels to be
acquired;
the commission must, at least ten (10) days before the public hearing
under section 17 of this chapter, send the notice required by section
17 of this chapter by first class mail to affected neighborhood
associations and to persons owning property that is in the proposed
enlargement of the area or that is proposed to be added to the
acquisition list. If the enlargement of an area is proposed, notice must
also be filed in accordance with section 17(b) of this chapter, and
agencies and officers may not take actions prohibited by section
17(b) of this chapter in the proposed enlarged area.
(c) The commission may require that neighborhood associations
register with the commission. The commission may adopt a rule that
requires that a neighborhood association encompass a part of the
geographic area included in or proposed to be included in a
redevelopment project area, urban renewal area, or economic
development area to qualify as an affected neighborhood association.As added by P.L.114-1989, SEC.4. Amended by P.L.185-2005,
SEC.14; P.L.146-2008, SEC.729.

Appeals
Sec. 18. (a) A person who filed a written remonstrance with the
redevelopment commission under section 17 of this chapter and is
aggrieved by the final action taken may, within ten (10) days after
that final action, file in the office of the clerk of the circuit or
superior court a copy of the order of the commission and his
remonstrance against that order, together with his bond conditioned
to pay the costs of his appeal if the appeal is determined against him.
The only ground of remonstrance that the court may hear is whether
the proposed project will be of public utility and benefit. The burden
of proof is on the remonstrator.
(b) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall hear evidence on the remonstrances, and may confirm the final
action of the commission or sustain the remonstrances. The judgment
of the court is final and conclusive, unless an appeal is taken as in
other civil actions.As added by Acts 1981, P.L.309, SEC.33.

IC 36-7-14-19 Acquisition of real property; procedure
Sec. 19. (a) If no appeal is taken or if an appeal is taken but is
unsuccessful, the redevelopment commission shall proceed with the
proposed project to the extent that money is available for that
purpose.
(b) The redevelopment commission shall first approve and adopt
a list of the real property and interests in real property to be acquired
and the price to be offered to the owner of each parcel of interest.
The prices to be offered may not exceed the average of two (2)
independent appraisals of fair market value procured by the
commission except that appraisals are not required in transactions
with other governmental agencies. However, if the real property is
less than five (5) acres in size and the fair market value of the real
property or interest has been appraised by one (1) independent
appraiser at less than ten thousand dollars ($10,000), the second
appraisal may be made by a qualified employee of the department of
redevelopment. The prices indicated on the list may not be exceeded
unless specifically authorized by the commission or ordered by a
court in condemnation proceedings. The commission may except
from acquisition any real property in the area if the commission finds
that such an acquisition is not necessary under the redevelopment
plan. Appraisals made under this section are for the information of
the commission and are not open for public inspection.
(c) Negotiations for the purchase of property may be carried on
directly by the redevelopment commission, by its employees, or by
expert negotiations, but no option, contract, or understanding relative
to the purchase of real property is binding on the commission until
approved and accepted by the commission in writing. The

commission may authorize the payment of a nominal fee to bind an
option and as a part of the consideration for conveyance may agree
to pay the expense incident to the conveyance and determination of
the title of the property. Payment for the property purchased shall be
made when and as directed by the commission but only on delivery
of proper instruments conveying the title or interest of the owner to
the "City (Town or County) of ______________ for the use and
benefit of its department of redevelopment".
(d) All real property and interests in real property acquired by the
redevelopment commission are free and clear of all liens,
assessments, and other governmental charges except for current
property taxes, which shall be prorated to the date of acquisition.
(e) Notwithstanding subsections (a) through (d), the
redevelopment commission may, before the time referred to in this
section, accept gifts of property needed for the redevelopment of
redevelopment project areas if the property is free and clear of all
liens other than taxes, assessments, and other governmental charges.
The commission may, before the time referred to in this section, take
options on or contract for the acquisition of property needed for the
redevelopment of redevelopment project areas if the options and
contracts are not binding on the commission or the district until the
time referred to in this section and until money is available to pay the
consideration set out in the options or contracts.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.114-1989,
SEC.5; P.L.35-1990, SEC.56; P.L.185-2005, SEC.15.

IC 36-7-14-20 Eminent domain; procedure; approval of legislative body
Sec. 20. (a) Subject to the approval of the legislative body of the
unit that established the department of redevelopment, if the
redevelopment commission considers it necessary to acquire real
property in a redevelopment project area by the exercise of the power
of eminent domain, the commission shall adopt a resolution setting
out its determination to exercise that power and directing its attorney
to file a petition in the name of the unit on behalf of the department
of redevelopment, in the circuit or superior court of the county in
which the property is situated.
(b) Eminent domain proceedings under this section are governed
by IC 32-24 and other applicable statutory provisions for the exercise
of the power of eminent domain. Property already devoted to a public
use may be acquired under this section, but property belonging to the
state or any political subdivision may not be acquired without its
consent.
(c) The court having jurisdiction shall direct the clerk of the
circuit court to execute a deed conveying the title of real property
acquired under this section to the unit for the use and benefit of its
department of redevelopment.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.2-2002,
SEC.110; P.L.185-2005, SEC.16; P.L.146-2008, SEC.730.

IC 36-7-14-21 Commission authority in redevelopment area
Sec. 21. (a) The redevelopment commission may proceed with the
clearing and replanning of the area described in the resolution before
the acquisition of all of that area. It may also proceed with the repair
and maintenance of buildings that have been acquired and are not to
be cleared, and with the following with respect to environmental
contamination:
(1) Investigation.
(2) Remediation.
The redevelopment commission may carry out activities under this
subsection by labor employed directly by the commission or by
contract. Contracts for clearance may provide that the contractor is
entitled to retain and dispose of salvaged material, as a part of the
contract price or on the basis of stated prices for the amounts of the
various materials actually salvaged.
(b) All contracts for material or labor under this section shall be
let under IC 36-1.
(c) In the planning and rezoning of the real property acquired, the
opening, closing, relocation, and improvement of public ways, and
the construction, relocation, and improvement of levees, sewers,
parking facilities, and utility services, the redevelopment commission
shall proceed in the same manner as private owners of the property.
It may negotiate with the proper officers and agencies of the unit to
secure the proper orders, approvals, and consents.
(d) Any construction work required in connection with
improvements in the area described in the resolution may be carried
out by:
(1) the appropriate municipal or county department or agency;
or
(2) the department of redevelopment, if:
(A) all plans, specifications, and drawings are approved by
the appropriate department or agency; and
(B) the statutory procedures for the letting of contracts by
the appropriate department or agency are followed by the
department of redevelopment.
(e) The redevelopment commission may pay any charges or
assessments made on account of orders, approval, consents, and
construction work under this section, or may agree to pay these
assessments in installments as provided by statute in the case of
private owners. The commission may:
(1) by special waiver filed with the municipal works board or
county executive, waive the statutory procedure and notices
required by law in order to create valid liens on private
property; and
(2) cause any assessments to be spread on a different basis than
that provided by statute.
(f) None of the real property acquired under this chapter may be
set aside and dedicated for public ways, parking facilities, sewers,
levees, parks, or other public purposes until the redevelopment

commission has obtained the consent and approval of the department
or agency under whose jurisdiction the property will be placed.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.310, SEC.89; Acts 1982, P.L.33, SEC.30; P.L.221-2007, SEC.36.

IC 36-7-14-22 Public sale or lease of real property; procedure
Sec. 22. (a) This section does not apply to the sale or grant of real
property or interests in real property to urban enterprise associations
or community development corporations under section 22.2 of this
chapter. The provisions of this section concerning publication and
bidding procedures do not apply to sales, leases, or other dispositions
of real property to other public agencies for public purposes.
(b) Before offering for sale or lease to the public any of the real
property acquired, the redevelopment commission shall cause two (2)
separate appraisals of the sale value, or rental value in case of a
lease, to be made by independent appraisers. However, if the real
property is less than five (5) acres in size and the fair market value
of the real property or interest has been appraised by one (1)
independent appraiser at less than ten thousand dollars ($10,000), the
second appraisal may be made by a qualified employee of the
department of redevelopment. In making appraisals, the appraisers
shall take into consideration the size, location, and physical condition
of the parcels, the advantages accruing to the parcels under the
redevelopment plan, and all other factors having a bearing on the
value of the parcels. The appraisals are solely for the information of
the commission, and are not open for public inspection.
(c) The redevelopment commission shall then prepare an offering
sheet showing the parcels to be offered and the offering prices, which
may not be less than the average of the two (2) appraisals. Copies of
the offering sheets shall be furnished to prospective buyers on
request. Maps and plats showing the size and location of all parcels
to be offered shall also be kept available for inspection at the office
of the department.
(d) A notice shall be published in accordance with IC 5-3-1. The
notice must state that at a designated time the commission will open
and consider written offers for the purchase or lease of the real
property being offered. In giving the notice it is not necessary to
describe each parcel separately, or to specify the exact terms of
disposition, but the notice:
(1) must state the general location of the parcels;
(2) call attention generally to any limitations on the use to be
made of the real property offered; and
(3) state that a bid submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) At the time fixed in the notice the commission shall open and
consider any offers received. These offers may consist of
consideration in the form of cash, other property, or a combination

of cash and other property. However, with respect to property other
than cash, the offer must be accompanied by evidence of the
property's fair market value that is satisfactory to the commission in
its sole discretion. All offers received shall be opened at public
meetings of the commission and shall be kept open for public
inspection.
(f) The commission may reject any bids and may make awards to
the highest and best bidders. In determining the best bids, the
commission shall take into consideration the following factors:
(1) The size and character of the improvements proposed to be
made by the bidder on the real property bid on.
(2) The bidder's plans and ability to improve the real property
with reasonable promptness.
(3) Whether the real property when improved will be sold or
rented.
(4) The bidder's proposed sale or rental prices.
(5) The bidder's compliance with subsection (d)(3).
(6) Any factors that will assure the commission that the sale or
lease, if made, will further the execution of the redevelopment
plan and best serve the interest of the community, from the
standpoint of both human and economic welfare.
(g) The commission may contract with a bidder in regard to the
factors listed in subsection (f), and the contract may provide for the
deposit of surety bonds, the making of good faith deposits, liquidated
damages, the right of repurchase, or other rights and remedies if the
bidder fails to comply with the contract.
(h) After the opening and consideration of the written offers filed
in response to the notice, the commission may dispose of the
remainder of the available real property either at public sale or by
private negotiation carried on by the commission, its regular
employees, or real estate experts employed for that purpose. For a
period of thirty (30) days after the opening of the written offers, no
sale or lease may be made at a price or rental less than that shown on
the offering sheet, except in the case of sales or rentals of ten (10) or
more parcels to a purchaser or lessee who agrees to improve the
parcels immediately, but after that period the commission may adjust
the offering prices in the manner the commission considers necessary
to further the redevelopment plan.
(i) A conveyance under this section may not be made until the
agreed consideration has been paid, unless the redevelopment
commission passes a resolution expressly providing that the
consideration does not have to be paid before the conveyance is
made. In addition, such a resolution may provide for a mortgage or
other security. All deeds, leases, land sale contracts, or other
conveyances, and all contracts and agreements, including contracts
of purchase and sale and contracts for advancements, loans, grants,
contributions, or other aid, shall be executed in the name of the "City
(or Town or County) of ______________, Department of
Redevelopment", and shall be signed by the president or vice
president of the redevelopment commission and attested by its

secretary. A seal is not required on these instruments or any other
instruments executed in the name of the department.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.45, SEC.30; P.L.114-1989, SEC.6; P.L.336-1989(ss), SEC.51;
P.L.31-1994, SEC.17; P.L.39-1994, SEC.24; P.L.113-2002, SEC.5.

IC 36-7-14-22.2 Sale or grant of real property to urban enterprise association or
community development corporation; procedure
Sec. 22.2. (a) The commission may sell or grant, at no cost, title
to real property to an urban enterprise association for the purpose of
developing the real property if the following requirements are met:
(1) The urban enterprise association has incorporated as a
nonprofit corporation under IC 5-28-15-14(b)(3).
(2) The parcel of property to be sold or granted is located
entirely within the enterprise zone for which the urban
enterprise association was created under IC 5-28-15-13.
(3) The urban enterprise association agrees to cause
development on the parcel of property within a specified period
that may not exceed five (5) years from the date of the sale or
grant.
(4) The urban enterprise association agrees to rehabilitate or
otherwise develop the property in a manner that is similar to
and consistent with the use of the other properties in the
enterprise zone.
(b) The commission may sell or grant, at no cost, title to real
property to a community development corporation (as defined in
IC 4-4-28-2) for the purpose of providing low or moderate income
housing or other development that will benefit or serve low or
moderate income families if the following requirements are met:
(1) The community development corporation has as a major
corporate purpose and function the provision of housing for low
and moderate income families within the geographic area in
which the parcel of real property is located.
(2) The community development corporation agrees to cause
development that will serve or benefit low or moderate income
families on the parcel of real property within a specified period,
which may not exceed five (5) years from the date of the sale or
grant.
(3) The community development corporation agrees that the
community development corporation and each applicant,
recipient, contractor, or subcontractor undertaking work in
connection with the real property will:
(A) use lower income project area residents as trainees and
as employees; and
(B) contract for work with business concerns located in the

project area or owned in substantial part by persons residing
in the project area;
to the greatest extent feasible, as determined under the
standards specified in 24 CFR 135.
(4) The community development corporation agrees to
rehabilitate or otherwise develop the property in a manner that
is similar to and consistent with the use of the other properties
in the area served by the community development corporation.
(c) To carry out the purposes of this section, the commission may
secure from the county under IC 6-1.1-25-9(e) parcels of property
acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.
(d) Before offering any parcel of property for sale or grant, the
fair market value of the parcel of property must be determined by an
appraiser, who may be an employee of the department. However, if
the commission has obtained the parcel in the manner described in
subsection (c), an appraisal is not required. An appraisal under this
subsection is solely for the information of the commission and is not
available for public inspection.
(e) The commission must decide at a public meeting whether the
commission will sell or grant the parcel of real property. In making
this decision, the commission shall give substantial weight to the
extent to which and the terms under which the urban enterprise
association or community development corporation will cause
development on the property.
(f) Before conducting a meeting under subsection (g), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address, if any, or a common description of the property other
than the legal description.
(g) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a meeting to sell or grant the parcel to an urban
enterprise zone or to a community development corporation even
though the parcel has not yet been transferred to the commission.
After the hearing, the commission may adopt a resolution directing
the department to take appropriate steps necessary to acquire the
parcel from the county and to transfer the parcel to the urban
enterprise association or to the community development corporation.
(h) A conveyance of property under this section shall be made in
accordance with section 22(i) of this chapter.
(i) An urban enterprise association that purchases or receives real
property under this section shall report the terms of the conveyance
to the board of the Indiana economic development corporation not
later than thirty (30) days after the date the conveyance of the
property is made.As added by P.L.113-2002, SEC.6. Amended by P.L.1-2003, SEC.99;
P.L.4-2005, SEC.134.

IC 36-7-14-22.5 Additional commission powers concerning real property
Sec. 22.5. (a) This section applies to the following:
(1) Real property:
(A) that was acquired by the commission to carry out a
redevelopment project, an economic development area
project, or an urban renewal project; and
(B) relative to which the commission has, at a public
hearing, decided that the real property is not needed to
complete the redevelopment activity, an economic
development activity, or urban renewal activity in the project
area.
(2) Real property acquired under this chapter that is not in a
redevelopment project area, economic development area, or an
urban renewal project area.
(3) Parcels of property secured from the county under
IC 6-1.1-25-9(e) that were acquired by the county under
IC 6-1.1-24 and IC 6-1.1-25.
(4) Real property donated or transferred to the commission to
be held and disposed of under this section.
However, this section does not apply to property acquired under
section 32.5 of this chapter.
(b) The commission may do the following to or for real property
described in subsection (a):
(1) Examine, classify, manage, protect, insure, and maintain the
property.
(2) Eliminate deficiencies (including environmental
deficiencies), carry out repairs, remove structures, and make
improvements.
(3) Control the use of the property.
(4) Lease the property.
(5) Use any powers under section 12.2 of this chapter in relation
to the property.
(c) The commission may enter into contracts to carry out part or
all of the functions described in subsection (b).
(d) The commission may extinguish all delinquent taxes, special
assessments, and penalties relative to real property donated to the
commission to be held and disposed of under this section. The
commission shall provide the county auditor with a list of the real
property on which delinquent taxes, special assessments, and
penalties are extinguished under this subsection.
(e) Real property described in subsection (a) may be sold,
exchanged, transferred, granted, donated, or otherwise disposed of
in any of the following ways:
(1) In accordance with section 22, 22.2, 22.6, or 22.7 of this
chapter.
(2) In accordance with the provisions authorizing an urban
homesteading program under IC 36-7-17.
(f) In disposing of real property under subsection (e), the
commission may:
(1) group together properties for disposition in a manner that
will best serve the interest of the community, from the
standpoint of both human and economic welfare; and
(2) group together nearby or similar properties to facilitate
convenient disposition.As added by P.L.169-2006, SEC.70.

IC 36-7-14-22.6 "Abutting landowner"; "offering price"; sale to abutting
landowner; appraisal
Sec. 22.6. (a) As used in this section, "abutting landowner" means
an owner of property that:
(1) touches, borders on, or is contiguous to the property that is
the subject of sale; and
(2) does not constitute a:
(A) public easement; or
(B) public right-of-way.
(b) As used in this section, "offering price" means the appraised
value of real property plus all costs associated with the sale,
including:
(1) appraisal fees;
(2) title insurance;
(3) recording fees; and
(4) advertising costs.
(c) If the assessed value of a tract of real property to be sold is
less than fifteen thousand dollars ($15,000), based on the most recent
assessment of the tract or of the tract of which it was a part before it
was acquired, the commission may proceed under this section.
(d) The commission may determine that:
(1) the highest and best use of the tract is sale to an abutting
landowner;
(2) the cost to the public of maintaining the tract equals or
exceeds the estimated fair market value of the tract; or
(3) it is economically unjustifiable to sell the tract under section
22 of this chapter.
(e) Not more than ten (10) days after the commission makes a
determination under subsection (d), the commission shall publish a
notice in accordance with IC 5-3-1 identifying the tracts intended for
sale by legal description and, if possible, by key number and street
address. The notice must also include the offering price and a
statement that:
(1) the property may not be sold to a person who is ineligible
under IC 36-1-11-16; and
(2) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
At the time of publication of notice under this subsection, the
commission shall send notice by certified mail to all abutting
landowners. This notice shall contain the same information as the

published notice.
(f) The commission shall also have each tract appraised. The
appraiser must be a person who is professionally engaged in making
appraisals, a person licensed under IC 25-34.1, or an employee of the
political subdivision who is familiar with the value of the tract.
However, if the assessed value of a tract is less than six thousand
dollars ($6,000), based on the most recent assessment of the tract or
of the tract of which it was a part before it was acquired, the
commission is not required to have the tract appraised.
(g) If, not more than ten (10) days after the date of publication of
the notice under subsection (e), the commission receives one (1) or
more eligible offers to purchase a tract listed in the notice at or in
excess of the offering price, the commission shall conduct the
negotiation and sale of the tract under section 22(f), 22(g), and 22(i)
of this chapter.
(h) Notwithstanding subsection (g), if not more than ten (10) days
after the date of publication of the notice under subsection (e) the
commission does not receive from any person other than an abutting
landowner an eligible offer to purchase the tract at or in excess of the
offering price, the commission shall conduct the negotiation and sale
of the tract as follows:
(1) If only one (1) eligible abutting landowner makes an eligible
offer to purchase the tract, then subject to IC 36-1-11-16 and
without further appraisal or notice, the commission shall offer
to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
eligible offer to purchase the tract, the tract shall be sold to the
eligible abutting landowner who submits the highest eligible
offer for the tract and who complies with any requirement under
subsection (e)(2).
(3) If no eligible abutting landowner submits an eligible offer
to purchase the tract, the commission may sell the tract to any
person who submits the highest eligible offer for the tract,
except a person who is ineligible to purchase the tract under
IC 36-1-11-16.As added by P.L.169-2006, SEC.71.

IC 36-7-14-22.7 Disposal of real property; appraisal
Sec. 22.7. (a) The commission may dispose of real property to
which section 22.5 of this chapter applies by following the procedure
set forth in this section.
(b) The commission shall first have the property appraised by two
(2) appraisers. The appraisers must be:
(1) persons who are professionally engaged in making
appraisals;
(2) persons who are licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.

The appraisers shall make a joint appraisal of the property.
(c) The commission may:
(1) negotiate a sale or transfer; and
(2) dispose of the property;
at a value that is not less than the appraised value determined under
subsection (b).
(d) Disposal of real property under this chapter is subject to the
approval of the commission. The commission may not approve a
disposal of property without conducting a public hearing after giving
notice under IC 5-3-1.
(e) In addition to any other reason for disapproving a disposal of
property under this section, the commission may disapprove a sale of
a tract of residential property to any bidder who does not by affidavit
declare that the bidder will reside on that property for at least one (1)
year after the bidder obtains possession of the property.As added by P.L.169-2006, SEC.72.

IC 36-7-14-23 Unit officers; duties regarding department funds
Sec. 23. Each officer of the unit who has duties in respect to the
funds and accounts of the unit shall perform the same duties with
respect to the funds and accounts of the department of
redevelopment, except as otherwise provided in this chapter. An
officer performing these duties is not entitled to any compensation
in addition to that paid him by the unit.As added by Acts 1981, P.L.309, SEC.33.

IC 36-7-14-24 Payment of expenses incurred before tax levy; procedure
Sec. 24. (a) All expenses incurred by the department of
redevelopment that must be paid before the collection of taxes levied
under this chapter shall be paid in the manner prescribed by this
section. The commission shall certify the items of expense to the
fiscal officer of the unit requesting payment of the amounts certified.
Subject to appropriation by the fiscal body of the unit, the fiscal
officer shall then draw a warrant in the requested amount to be paid
out of the general fund of the unit. If the unit has no unappropriated
monies in its general fund, the fiscal officer of the unit may
recommend to the fiscal body the temporary transfer from other
funds of the unit of a sufficient amount to meet the items of expense,
or the making of a temporary loan for that purpose. The fiscal body
may make the transfer or authorize the temporary loan in the same
manner that other transfers and temporary loans are made by the unit.
(b) The amount advanced by the unit under this section may not
exceed fifty thousand dollars ($50,000), and the fund or funds of the
unit from which the advancement is made shall be fully reimbursed
and repaid by the redevelopment commission out of legally available
revenues.
(c) The redevelopment commission may not use any part of the
amount advanced by the unit under this section in the acquisition of

IC 36-7-14-25.1 Issuance of bonds; procedure; tax exemption; limitations;
indebtedness of taxing district; approval for large issuance
Sec. 25.1. (a) In addition to other methods of raising money for
property acquisition or redevelopment in a redevelopment project
area, and in anticipation of the special tax to be levied under section
27 of this chapter, the taxes allocated under section 39 of this
chapter, or other revenues of the district, or any combination of these
sources, the redevelopment commission may, by resolution and
subject to subsection (p), issue the bonds of the special taxing district
in the name of the unit. The amount of the bonds may not exceed the
total, as estimated by the commission, of all expenses reasonably
incurred in connection with the acquisition and redevelopment of the
property, including:
(1) the total cost of all land, rights-of-way, and other property
to be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and
redevelopment of the property or the issuance of bonds;
(3) capitalized interest permitted by this chapter and a debt
service reserve for the bonds to the extent the redevelopment
commission determines that a reserve is reasonably required;
and
(4) expenses that the redevelopment commission is required or
permitted to pay under IC 8-23-17.
(b) If the redevelopment commission plans to acquire different
parcels of land or let different contracts for redevelopment work at
approximately the same time, whether under one (1) or more
resolutions, the commission may provide for the total cost in one (1)
issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution
and negotiable, subject to the requirements of the bond resolution for
registering the bonds. The resolution authorizing the bonds must
state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008;
(B) thirty (30) years, for bonds issued after June 30, 2008, to

finance:
(i) an integrated coal gasification powerplant (as defined
in IC 6-3.1-29-6);
(ii) a part of an integrated coal gasification powerplant (as
defined in IC 6-3.1-29-6); or
(iii) property used in the operation or maintenance of an
integrated coal gasification powerplant (as defined in
IC 6-3.1-29-6);
that received a certificate of public convenience and
necessity from the Indiana utility regulatory commission
under IC 8-1-8.5 et seq. before July 1, 2008; or
(C) twenty-five (25) years, for bonds issued after June 30,
2008, that are not described in clause (B).
The resolution may also state that the bonds are redeemable before
maturity with or without a premium, as determined by the
redevelopment commission.
(d) The redevelopment commission shall certify a copy of the
resolution authorizing the bonds to the municipal or county fiscal
officer, who shall then prepare the bonds, subject to subsection (p).
The seal of the unit must be impressed on the bonds, or a facsimile
of the seal must be printed on the bonds.
(e) The bonds must be executed by the appropriate officer of the
unit and attested by the municipal or county fiscal officer.
(f) The bonds are exempt from taxation for all purposes.
(g) The municipal or county fiscal officer shall give notice of the
sale of the bonds by publication in accordance with IC 5-3-1. The
municipal fiscal officer, or county fiscal officer or executive, shall
sell the bonds to the highest bidder, but may not sell them for less
than ninety-seven percent (97%) of their par value. However, bonds
payable solely or in part from tax proceeds allocated under section
39(b)(2) of this chapter, or other revenues of the district may be sold
at a private negotiated sale.
(h) Except as provided in subsection (i), a redevelopment
commission may not issue the bonds when the total issue, including
bonds already issued and to be issued, exceeds two percent (2%) of
the adjusted value of the taxable property in the special taxing
district, as determined under IC 36-1-15.
(i) The bonds are not a corporate obligation of the unit but are an
indebtedness of the taxing district. The bonds and interest are
payable, as set forth in the bond resolution of the redevelopment
commission:
(1) from a special tax levied upon all of the property in the
taxing district, as provided by section 27 of this chapter;
(2) from the tax proceeds allocated under section 39(b)(2) of
this chapter;
(3) from other revenues available to the redevelopment
commission; or
(4) from a combination of the methods stated in subdivisions (1)
through (3).
If the bonds are payable solely from the tax proceeds allocated under

section 39(b)(2) of this chapter, other revenues of the redevelopment
commission, or any combination of these sources, they may be issued
in any amount without limitation.
(j) Proceeds from the sale of bonds may be used to pay the cost of
interest on the bonds for a period not to exceed five (5) years from
the date of issuance.
(k) All laws relating to the giving of notice of the issuance of
bonds, the giving of notice of a hearing on the appropriation of the
proceeds of the bonds, the right of taxpayers to appear and be heard
on the proposed appropriation, and the approval of the appropriation
by the department of local government finance apply to all bonds
issued under this chapter that are payable from the special benefits
tax levied pursuant to section 27 of this chapter or from taxes
allocated under section 39 of this chapter.
(l) All laws relating to:
(1) the filing of petitions requesting the issuance of bonds; and
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuance
of bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a);
apply to bonds issued under this chapter except for bonds payable
solely from tax proceeds allocated under section 39(b)(2) of this
chapter, other revenues of the redevelopment commission, or any
combination of these sources.
(m) If a debt service reserve is created from the proceeds of
bonds, the debt service reserve may be used to pay principal and
interest on the bonds as provided in the bond resolution.
(n) Any amount remaining in the debt service reserve after all of
the bonds of the issue for which the debt service reserve was
established have matured shall be:
(1) deposited in the allocation fund established under section
39(b)(2) of this chapter; and
(2) to the extent permitted by law, transferred to the county or
municipality that established the department of redevelopment
for use in reducing the county's or municipality's property tax
levies for debt service.
(o) If bonds are issued under this chapter that are payable solely
or in part from revenues to the redevelopment commission from a
project or projects, the redevelopment commission may adopt a
resolution or trust indenture or enter into covenants as is customary
in the issuance of revenue bonds. The resolution or trust indenture
may pledge or assign the revenues from the project or projects, but
may not convey or mortgage any project or parts of a project. The
resolution or trust indenture may also contain any provisions for
protecting and enforcing the rights and remedies of the bond owners
as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the redevelopment
commission. The redevelopment commission may establish fees and

charges for the use of any project and covenant with the owners of
any bonds to set those fees and charges at a rate sufficient to protect
the interest of the owners of the bonds. Any revenue bonds issued by
the redevelopment commission that are payable solely from revenues
of the commission shall contain a statement to that effect in the form
of bond.
(p) If the total principal amount of bonds authorized by a
resolution of the redevelopment commission adopted before July 1,
2008, is equal to or greater than three million dollars ($3,000,000),
the bonds may not be issued without the approval, by resolution, of
the legislative body of the unit. Bonds authorized in any principal
amount by a resolution of the redevelopment commission adopted
after June 30, 2008, may not be issued without the approval of the
legislative body of the unit.As added by Acts 1982, P.L.6, SEC.24. Amended by P.L.72-1983,
SEC.2; P.L.380-1987(ss), SEC.10; P.L.5-1988, SEC.215;
P.L.114-1989, SEC.7; P.L.18-1990, SEC.292; P.L.6-1997, SEC.209;
P.L.90-2002, SEC.473; P.L.224-2003, SEC.269; P.L.185-2005,
SEC.17; P.L.219-2007, SEC.125; P.L.146-2008, SEC.732.

IC 36-7-14-25.2 Leased facilities; procedure
Sec. 25.2. (a) A redevelopment commission may enter into a lease
of any property that could be financed with the proceeds of bonds
issued under this chapter with a lessor for a term not to exceed:
(1) fifty (50) years, for a lease entered into before July 1, 2008;
or
(2) twenty-five (25) years, for a lease entered into after June 30,
2008.
The lease may provide for payments to be made by the
redevelopment commission from special benefits taxes levied under
section 27 of this chapter, taxes allocated under section 39 of this
chapter, any other revenues available to the redevelopment
commission, or any combination of these sources.
(b) A lease may provide that payments by the redevelopment
commission to the lessor are required only to the extent and only for
the period that the lessor is able to provide the leased facilities in
accordance with the lease. The terms of each lease must be based
upon the value of the facilities leased and may not create a debt of
the unit or the district for purposes of the Constitution of the State of
Indiana.
(c) A lease may be entered into by the redevelopment commission
only after a public hearing by the redevelopment commission at
which all interested parties are provided the opportunity to be heard.
After the public hearing, the redevelopment commission may adopt
a resolution authorizing the execution of the lease on behalf of the
unit if it finds that the service to be provided throughout the term of
the lease will serve the public purpose of the unit and is in the best
interests of its residents. Any lease approved by a resolution of the
redevelopment commission must be approved by an ordinance of the

fiscal body of the unit.
(d) Upon execution of a lease providing for payments by the
redevelopment commission in whole or in part from the levy of
special benefits taxes under section 27 of this chapter and upon
approval of the lease by the unit's fiscal body, the redevelopment
commission shall publish notice of the execution of the lease and its
approval in accordance with IC 5-3-1. Fifty (50) or more taxpayers
residing in the redevelopment district who will be affected by the
lease and who may be of the opinion that no necessity exists for the
execution of the lease or that the payments provided for in the lease
are not fair and reasonable may file a petition in the office of the
county auditor within thirty (30) days after the publication of the
notice of execution and approval. The petition must set forth the
petitioners' names, addresses, and objections to the lease and the
facts showing that the execution of the lease is unnecessary or
unwise or that the payments provided for in the lease are not fair and
reasonable, as the case may be.
(e) Upon the filing of the petition, the county auditor shall
immediately certify a copy of it, together with such other data as may
be necessary in order to present the questions involved, to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time and place for a hearing in the redevelopment district,
which must be not less than five (5) or more than thirty (30) days
after the time is fixed. Notice of the hearing shall be given by the
department of local government finance to the members of the fiscal
body, to the redevelopment commission, and to the first fifty (50)
petitioners on the petition by a letter signed by the commissioner or
deputy commissioner of the department and enclosed with fully
prepaid postage sent to those persons at their usual place of
residence, at least five (5) days before the date of the hearing. The
decision of the department of local government finance on the
appeal, upon the necessity for the execution of the lease, and as to
whether the payments under it are fair and reasonable, is final.
(f) A redevelopment commission entering into a lease payable
from allocated taxes under section 39 of this chapter or other
available funds of the redevelopment commission may:
(1) pledge the revenue to make payments under the lease
pursuant to IC 5-1-14-4; and
(2) establish a special fund to make the payments.
(g) Lease rentals may be limited to money in the special fund so
that the obligations of the redevelopment commission to make the
lease rental payments are not considered debt of the unit or the
district for purposes of the Constitution of the State of Indiana.
(h) Except as provided in this section, no approvals of any
governmental body or agency are required before the redevelopment
commission enters into a lease under this section.
(i) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought
within thirty (30) days after the publication of the notice of the

execution and approval of the lease. However, if the lease is payable
in whole or in part from tax levies and an appeal has been taken to
the department of local government finance, an action to contest the
validity or enjoin the performance must be brought within thirty (30)
days after the decision of the department.
(j) If a redevelopment commission exercises an option to buy a
leased facility from a lessor, the redevelopment commission may
subsequently sell the leased facility, without regard to any other
statute, to the lessor at the end of the lease term at a price set forth in
the lease or at fair market value established at the time of the sale by
the redevelopment commission through auction, appraisal, or arms
length negotiation. If the facility is sold at auction, after appraisal, or
through negotiation, the redevelopment commission shall conduct a
hearing after public notice in accordance with IC 5-3-1 before the
sale. Any action to contest the sale must be brought within fifteen
(15) days of the hearing.As added by P.L.380-1987(ss), SEC.11. Amended by P.L.90-2002,
SEC.474; P.L.146-2008, SEC.733.

IC 36-7-14-25.3 Lessors of redevelopment facilities; effect of other statutory
provisions
Sec. 25.3. (a) Any of the following persons may lease facilities
referred to in section 25.2 of this chapter to a redevelopment
commission under this chapter:
(1) A not-for-profit corporation organized under Indiana law or
admitted to do business in Indiana.
(2) A redevelopment authority established under IC 36-7-14.5.
(b) Notwithstanding any other law, a lessor under this section and
section 25.2 of this chapter is a qualified entity for purposes of
IC 5-1.4.
(c) Notwithstanding any other law, a redevelopment facility
leased by the redevelopment commission under this chapter from a
lessor borrowing bond proceeds from a unit under IC 36-7-12 is an
economic development facility for purposes of IC 36-7-11.9-3 and
IC 36-7-12.
(d) Notwithstanding IC 36-7-12-25 and IC 36-7-12-26, payments
by a redevelopment commission to a lessor described in subsection
(c) may be made from sources set forth in section 25.2 of this chapter
so long as the payments and the lease are structured to prevent the
lease obligation from constituting a debt of the unit or the district for
purposes of the Constitution of the State of Indiana.As added by P.L.380-1987(ss), SEC.12.

IC 36-7-14-25.5 Payment of redevelopment bonds or leases; pledge or covenant of
legislative body
Sec. 25.5. (a) Notwithstanding any other law, the legislative body
may pledge revenues received or to be received by the unit from:
(1) the unit's distributive share of the county option income tax

under IC 6-3.5-6;
(2) any other source legally available to the unit for the
purposes of this chapter; or
(3) any combination of revenues under subdivisions (1) through
(2);
in any amount to pay amounts payable under section 25.1 or 25.2 of
this chapter.
(b) The legislative body may covenant to adopt an ordinance to
increase its tax rate under the county option income tax or any other
revenues at the time it is necessary to raise funds to pay any amounts
payable under section 25.1 or 25.2 of this chapter.
(c) The commission may pledge revenues received or to be
received from any source legally available to the commission for the
purposes of this chapter in any amount to pay amounts payable under
section 25.1 or 25.2 of this chapter.
(d) The pledge or the covenant under this section may be for the
life of the bonds issued under section 25.1 of this chapter, the term
of a lease entered into under section 25.2 of this chapter, or for a
shorter period as determined by the legislative body. Money pledged
by the legislative body under this section shall be considered
revenues or other money available to the commission under sections
25.1 through 25.2 of this chapter.
(e) The general assembly covenants not to impair this pledge or
covenant so long as any bonds issued under section 25.1 of this
chapter are outstanding or as long as any lease entered into under
section 25.2 of this chapter is still in effect. The pledge or covenant
shall be enforced as provided in IC 5-1-14-4.As added by P.L.380-1987(ss), SEC.13. Amended by P.L.38-1988,
SEC.9; P.L.35-1990, SEC.57.

IC 36-7-14-26 Capital fund; deposits; gifts; allocation fund
Sec. 26. (a) All proceeds from the sale of bonds under section
25.1 of this chapter shall be kept as a separate and specific fund to
pay the expenses incurred in connection with the acquisition and
redevelopment of property. The fund shall be known as the
redevelopment district capital fund. Any surplus of funds remaining
after all expenses are paid shall be paid into and become a part of the
redevelopment district bond fund established under section 27 of this
chapter.
(b) All gifts or donations that are given or paid to the department
of redevelopment or to the unit for redevelopment purposes shall be
promptly deposited to the credit of the redevelopment district capital
fund. The redevelopment commission may use these gifts and
donations for the purposes of this chapter.
(c) Before the eleventh day of each calendar month the fiscal
officer shall notify the redevelopment commission and the officers
of the unit who have duties in respect to the funds and accounts of
the unit of the amount standing to the credit of the redevelopment
district capital fund at the close of business on the last day of the

preceding month.
(d) A redevelopment commission shall deposit in the allocation
fund established under section 39(b)(2) of this chapter of an
allocation area the proceeds from the sale or leasing of property in
the area under section 22 of this chapter if:
(1) there are outstanding bonds that were issued to pay costs of
redevelopment in the allocation area; and
(2) the bonds are payable solely or in part from tax proceeds
allocated under section 39(b)(2) of this chapter.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.72-1983,
SEC.3; P.L.38-1988, SEC.10.IC 36-7-14-27 Certain bonds or leases; special tax levy; disposition of
accumulated revenues; review of sufficiency of levies
Sec. 27. (a) This section applies only to:
(1) bonds that are issued under section 25.1 of this chapter; and
(2) leases entered into under section 25.2 of this chapter;
which are payable from a special tax levied upon all of the property
in the special taxing district. This section does not apply to bonds or
leases that are payable solely from tax proceeds allocated under
section 39(b)(2) of this chapter, other revenues of the redevelopment
commission, or any combination of these sources.
(b) The redevelopment commission shall levy each year a special
tax on all of the property of the redevelopment taxing district, in such
a manner as to meet and pay the principal of the bonds as they
mature, together with all accruing interest on the bonds or lease
rental payments under section 25.2 of this chapter. The commission
shall cause the tax levied to be certified to the proper officers as
other tax levies are certified, and to the auditor of the county in
which the redevelopment district is located, before the second day of
October in each year. The tax shall be estimated and entered on the
tax duplicate by the county auditor and shall be collected and
enforced by the county treasurer in the same manner as other state
and county taxes are estimated, entered, collected, and enforced. The
amount of the tax levied to pay bonds or lease rentals payable from
the tax levied under this section shall be reduced by any amount
available in the allocation fund established under section 39(b)(2) of
this chapter or other revenues of the redevelopment commission to
the extent such revenues have been set aside in the redevelopment
bond fund.
(c) As the tax is collected, it shall be accumulated in a separate
fund to be known as the redevelopment district bond fund and shall
be applied to the payment of the bonds as they mature and the
interest on the bonds as it accrues, or to make lease payments and to
no other purpose. All accumulations of the fund before their use for
the payment of bonds and interest or to make lease payments shall be
deposited with the depository or depositories for other public funds
of the unit in accordance with IC 5-13, unless they are invested under
IC 5-13-9.

(d) If there are no outstanding bonds that are payable solely or in
part from tax proceeds allocated under section 39(b)(2) of this
chapter and that were issued to pay costs of redevelopment in an
allocation area that is located wholly or in part in the special taxing
district, then all proceeds from the sale or leasing of property in the
allocation area under section 22 of this chapter shall be paid into the
redevelopment district bond fund and become a part of that fund. In
arriving at the tax levy for any year, the redevelopment commission
shall take into account the amount of the proceeds deposited under
this subsection and remaining on hand.
(e) The tax levies provided for in this section are reviewable by
other bodies vested by law with the authority to ascertain that the
levies are sufficient to raise the amount that, with other amounts
available, is sufficient to meet the payments under the lease payable
from the levy of taxes.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.180, SEC.11; P.L.72-1983, SEC.4; P.L.19-1987, SEC.49;
P.L.380-1987(ss), SEC.14; P.L.146-2008, SEC.734.

IC 36-7-14-27.5 Tax anticipation warrants; authorization; procedure
Sec. 27.5. (a) The redevelopment commission may borrow money
in anticipation of receipt of the proceeds of taxes levied for the
redevelopment district bond fund and not yet collected, and may
evidence this borrowing by issuing warrants of the redevelopment
district. However, the aggregate principal amount of warrants issued
in anticipation of and payable from the same tax levy or levies may
not exceed an amount equal to eighty percent (80%) of that tax levy
or levies, as certified by the department of local government finance,
or as determined by multiplying the rate of tax as finally approved by
the total assessed valuation (after deducting all mortgage deductions)
within the redevelopment district, as most recently certified by the
county auditor.
(b) The warrants may be authorized and issued at any time after
the tax or taxes in anticipation of which they are issued have been
levied by the redevelopment commission. For purposes of this
section, taxes for any year are considered to be levied upon adoption
by the commission of a resolution prescribing the tax levies for the
year. However, the warrants may not be delivered and paid for before
final approval of the tax levy or levies by the county board of tax
adjustment or, if appealed, by the department of local government
finance, unless the issuance of the warrants has been approved by the
department.
(c) All action that this section requires or authorizes the
redevelopment commission to take may be taken by resolution,
which need not be published or posted. The resolution takes effect
immediately upon its adoption by the redevelopment commission. An
action to contest the validity of tax anticipation warrants may not be
brought later than ten (10) days after the sale date.
(d) In their resolution authorizing the warrants, the redevelopment

commission must provide that the warrants mature at a time or times
not later than December 31 after the year in which the taxes in
anticipation of which the warrants are issued are due and payable.
(e) In their resolution authorizing the warrants, the redevelopment
commission may provide:
(1) the date of the warrants;
(2) the interest rate of the warrants;
(3) the time of interest payments on the warrants;
(4) the denomination of the warrants;
(5) the form either registered or payable to bearer, of the
warrants;
(6) the place or places of payment of the warrants, either inside
or outside the state;
(7) the medium of payment of the warrants;
(8) the terms of redemption, if any, of the warrants, at a price
not exceeding par value and accrued interest;
(9) the manner of execution of the warrants; and
(10) that all costs incurred in connection with the issuance of
the warrants may be paid from the proceeds of the warrants.
(f) The warrants shall be sold for not less than par value, after
notice inviting bids has been published under IC 5-3-1. The
redevelopment commission may also publish the notice in other
newspapers or financial journals.
(g) Warrants and the interest on them are not subject to any
limitation contained in section 25.1 of this chapter, and are payable
solely from the proceeds of the tax levy or levies in anticipation of
which the warrants were issued. The authorizing resolution must
pledge a sufficient amount of the proceeds of the tax levy or levies
to the payment of the warrants and the interest.As added by Acts 1981, P.L.310, SEC.90. Amended by P.L.1-1994,
SEC.176; P.L.90-2002, SEC.475; P.L.224-2007, SEC.121;
P.L.146-2008, SEC.735.

IC 36-7-14-28 Tax levy for planning, property acquisition, and expenses; deposit
in capital and general funds
Sec. 28. (a) A tax at a rate not to exceed three and thirty-three
hundredths cents ($0.0333) per one hundred dollars ($100) of
assessed valuation in a municipality and a tax at a rate not to exceed
one and thirty-three hundredths cents ($0.0133) per one hundred
dollars ($100) of assessed valuation in a county may be levied each
year for the purposes of this chapter, including:
(1) the payment, in whole or in part, of planning and survey
costs;
(2) the costs of property acquisition and redevelopment; and
(3) the payment of all general expenses of the department of
redevelopment.
However, a county may not levy this tax within the jurisdiction of a
city redevelopment commission.
(b) Each year the redevelopment commission shall formulate and

file a budget for the tax levy, in the same manner as executive
departments of the unit are required to formulate and file budgets.
This budget is subject to review and modification in the same manner
as the budgets and tax levies formulated by executive departments of
the unit.
(c) Revenues obtained from the tax levy for the payment in whole
or in part of the costs of acquisition of land, rights-of-way, or other
properties shall be deposited in the redevelopment district capital
fund established under section 26 of this chapter. Other revenues
obtained from the tax levy shall be deposited in a fund to be known
as the redevelopment district general fund.As added by Acts 1981, P.L.309, SEC.33. Amended by
P.L.380-1987(ss), SEC.15; P.L.6-1997, SEC.210.

IC 36-7-14-29 Payments from funds; procedure
Sec. 29. (a) All payments from any of the funds established by
this chapter shall be made by warrants drawn by the proper officers
of the unit upon vouchers of the redevelopment commission signed
by the president or vice president and the secretary or executive
secretary.
(b) Each of the funds established by this chapter is a continuing
fund and does not revert to the general fund of the unit at the end of
the calendar year.As added by Acts 1981, P.L.309, SEC.33.

IC 36-7-14-30 Urban renewal projects; authorization
Sec. 30. In addition to its authority under any other section of this
chapter, the redevelopment commission may plan and undertake
urban renewal projects. For purposes of this chapter, an urban
renewal project includes undertakings and activities for the
elimination and the prevention of the conditions described in
IC 36-7-1-3, and may involve any work or undertaking that is
performed for those purposes and is related to a redevelopment
project, or any rehabilitation or conservation work, or any
combination of such an undertaking or work, such as the following:
(1) Carrying out plans for a program of voluntary or compulsory
repair and rehabilitation of buildings or other improvements.
(2) Acquisition of real property and demolition, removal, or
rehabilitation of buildings and improvements on the property
when necessary for the following:
(A) To eliminate unhealthful, unsanitary, or unsafe
conditions.
(B) To mitigate or eliminate environmental contamination.
(C) To do any of the following:
(i) Lessen density.
(ii) Reduce traffic hazards.
(iii) Eliminate uses that are obsolete or otherwise
detrimental to the public welfare.

(iv) Otherwise remove or prevent the spread of the
conditions described in IC 36-7-1-3.
(v) Provide land for needed public facilities.
(3) Installation, construction, or reconstruction of streets,
utilities, parks, playgrounds, and other improvements necessary
for carrying out the objectives of the urban renewal project.
(4) The disposition, for uses in accordance with the objectives
of the urban renewal project, of any property acquired in the
area of the project.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.185-2005,
SEC.18; P.L.221-2007, SEC.37.

IC 36-7-14-31 Urban renewal plans
Sec. 31. An urban renewal project undertaken under this chapter
must be undertaken in accordance with an urban renewal plan for the
area of the project. For purposes of this chapter, an urban renewal
plan is a plan for an urban renewal project that:
(1) conforms to the general plan for the municipality or county
as a whole; and
(2) is sufficiently complete to indicate:
(A) land acquisition, demolition and removal of structures,
redevelopment, improvements, and rehabilitation proposed to
be carried out in the area of the urban renewal project;
(B) zoning and planning changes, if any;
(C) land uses;
(D) maximum densities;
(E) building requirements; and
(F) the plan's relationship to definite local objectives respecting
appropriate land uses, improved traffic, public transportation,
public utilities, recreational and community facilities, and other
public improvements.As added by Acts 1981, P.L.309, SEC.33.

IC 36-7-14-32 Urban renewal projects; powers and duties of commissions; units
and officers
Sec. 32. (a) In connection with the planning and undertaking of an
urban renewal plan or urban renewal project, the redevelopment
commission, municipal, county, public, and private officers,
agencies, and bodies have all the rights, powers, privileges, duties,
and immunities that they have with respect to a redevelopment plan
or redevelopment project, as if all of the provisions of this chapter
applicable to a redevelopment plan or redevelopment project were
applicable to an urban renewal plan or urban renewal project.
(b) In addition to its other powers, the redevelopment commission
may also:
(1) make plans for carrying out a program of voluntary repair
and rehabilitation of buildings and improvements;
(2) make plans for the enforcement of laws and regulations

relating to the use of land and the use and occupancy of
buildings and improvements, and to the compulsory repair,
rehabilitation, demolition, or removal of buildings and
improvements;
(3) make preliminary plans outlining urban renewal activities
for neighborhoods to embrace two (2) or more urban renewal
areas;
(4) make preliminary surveys, including environmental
assessments, to determine if the undertaking and carrying out of
an urban renewal project are feasible;
(5) make plans for the relocation of persons (including families,
business concerns, and others) displaced by an urban renewal
project;
(6) make relocation payments to or with respect to persons
(including families, business concerns, and others) displaced by
an urban renewal project, for moving expenses and losses of
property for which reimbursement or compensation is not
otherwise made, including the making of payments financed by
the federal government; and
(7) develop, test, and report methods and techniques, and carry
out demonstrations and other activities, for the prevention and
the elimination of the conditions described in IC 36-7-1-3 in
urban areas.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.185-2005,
SEC.19; P.L.221-2007, SEC.38.

IC 36-7-14-32.5 Acquisition of real property; procedure; purposes; approval of
fiscal body
Sec. 32.5. (a) Subject to the approval of the fiscal body of the unit
that established the department of redevelopment, the commission
may acquire a parcel of real property by the exercise of eminent
domain when the real property has all of the following
characteristics:
(1) The real property meets at least one (1) of the conditions
described in IC 32-24-4.5-7(1).
(2) The real property is capable of being developed or
rehabilitated to provide affordable housing for low or moderate
income families or to provide other development that will
benefit or serve low or moderate income families.
(3) The condition of the real property has a negative impact on
the use or value of the neighboring properties or other
properties in the community.
(b) The commission or the commission's designated hearing
examiner shall conduct a public meeting to determine whether a
parcel of real property has the characteristics set forth in subsection
(a). Each person holding a fee or life estate interest of record in the
property must be given notice by first class mail of the time and date
of the hearing at least ten (10) days before the hearing and is entitled
to present evidence and make arguments at the hearing.

(c) If the commission considers it necessary to acquire real
property under this section, the commission shall adopt a resolution
setting out the commission's determination to exercise that power and
directing the commission's attorney to file a petition in the name of
the city on behalf of the department in the circuit or superior court
with jurisdiction in the county.
(d) Eminent domain proceedings under this section are governed
by IC 32-24.
(e) The commission shall use real property acquired under this
section for one (1) of the following purposes:
(1) Sale in an urban homestead program under IC 36-7-17.
(2) Sale to a family whose income is at or below the county's
median income for families.
(3) Sale or grant to a neighborhood development corporation
with a condition in the granting clause of the deed requiring the
nonprofit development corporation to lease or sell the property
to a family whose income is at or below the county's median
income for families or to cause development that will serve or
benefit families whose income is at or below the unit's median
income for families.
(4) Any other purpose appropriate under this chapter so long as
it will serve or benefit families whose income is at or below the
unit's median income for families.
(f) A neighborhood development corporation or nonprofit
corporation that receives property under this section must agree to
rehabilitate or otherwise develop the property in a manner that is
similar to and consistent with the use of the other properties in the
area served by the corporation.As added by P.L.114-1989, SEC.8. Amended by P.L.31-1994,
SEC.19; P.L.2-2002, SEC.111; P.L.163-2006, SEC.20;
P.L.146-2008, SEC.736.

IC 36-7-14-33 Urban renewal projects; cooperation with public entities
Sec. 33. (a) Any:
(1) political subdivision;
(2) other governmental entity;
(3) public instrumentality created by state law; or
(4) public body created by state law;
may, in the area in which it is authorized to act, do all things
necessary to aid and cooperate in the planning and undertaking of an
urban renewal project, including furnishing the financial and other
assistance that it is authorized by this chapter to furnish for or in
connection with a redevelopment plan or redevelopment project.
(b) The redevelopment commission may delegate to:
(1) an executive department of a unit or county;
(2) another governmental entity;
(3) a public instrumentality created by state law; or
(4) a public body created by state law;
any of the powers or functions of the commission with respect to the

planning or undertaking of an urban renewal project in the area in
which that department, entity, public instrumentality, or public body
is authorized to act. The department, entity, public instrumentality,
or public body may then carry out or perform those powers or
functions for the commission.
(c) A unit, another governmental entity, a public instrumentality
created by state law, or a public body created by state law may enter
into agreements with the redevelopment commission or any other
entity respecting action to be taken under this chapter, including the
furnishing of funds or other assistance in connection with an urban
renewal plan or urban renewal project. These agreements may extend
over any period, notwithstanding any other law.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.221-2007,
SEC.39.

IC 36-7-14-34 Preparation of urban rehabilitation programs
Sec. 34. (a) The redevelopment commission may prepare a
workable program:
(1) to use private and public resources to eliminate and prevent
the conditions described in IC 36-7-1-3 in urban areas;
(2) to encourage needed urban rehabilitation;
(3) to provide for the redevelopment of areas needing
redevelopment; or
(4) to undertake any feasible activities that are suitably
employed to achieve the objectives of such a program.
(b) A program established under subsection (a) may include an
official plan of action for:
(1) effectively dealing with the problem of areas needing
redevelopment within the community; and
(2) the establishment and preservation of a well planned
community with well organized residential neighborhoods of
decent homes and suitable living environment for adequate
family life.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.185-2005,
SEC.20.

IC 36-7-14-35 Federal aid; issuance of bonds, notes, and warrants to federal
government; federal loan agreements as security for other loans;
approval of fiscal body
Sec. 35. (a) Subject to the approval of the fiscal body of the unit
that established the department of redevelopment, and in order to:
(1) undertake survey and planning activities under this chapter;
(2) undertake and carry out any redevelopment project, urban
renewal project, or housing program;
(3) pay principal and interest on any advances;
(4) pay or retire any bonds and interest on them; or
(5) refund loans previously made under this section;
the redevelopment commission may apply for and accept advances,

short term and long term loans, grants, contributions, and any other
form of financial assistance from the federal government, or from
any of its agencies. The commission may also enter into and carry
out contracts and agreements in connection with that financial
assistance upon the terms and conditions that the commission
considers reasonable and appropriate, as long as those terms and
conditions are not inconsistent with the purposes of this chapter. The
provisions of such a contract or agreement in regard to the handling,
deposit, and application of project funds, as well as all other
provisions, are valid and binding on the unit or its executive
departments and officers, as well as the commission, notwithstanding
any other provision of this chapter.
(b) Subject to the approval of the fiscal body of the unit that
established the department of redevelopment, the redevelopment
commission may issue and sell bonds, notes, or warrants to the
federal government to evidence short term or long term loans made
under this section, without notice of sale being given or a public
offering being made.
(c) Notwithstanding the provisions of this or any other chapter,
bonds, notes, or warrants issued by the redevelopment commission
under this section may:
(1) be in the amounts, form, or denomination;
(2) be either coupon or registered;
(3) carry conversion or other privileges;
(4) have a rank or priority;
(5) be of such description;
(6) be secured (subject to other provisions of this section) in
such manner;
(7) bear interest at a rate or rates;
(8) be payable as to both principal and interest in a medium of
payment, at a time or times (which may be upon demand) and
at a place or places;
(9) be subject to terms of redemption (with or without
premium);
(10) contain or be subject to any covenants, conditions, and
provisions; and
(11) have any other characteristics;
that the commission considers reasonable and appropriate.
(d) Bonds, notes, or warrants issued under this section are not an
indebtedness of the unit or taxing district within the meaning of any
constitutional or statutory limitation of indebtedness. The bonds,
notes, or warrants are not payable from or secured by a levy of taxes,
but are payable only from and secured only by income, funds, and
properties of the project becoming available to the redevelopment
commission under this chapter, as the commission specifies in the
resolution authorizing their issuance.
(e) Bonds, notes, or warrants issued under this section are exempt
from taxation for all purposes.
(f) Bonds, notes, or warrants issued under this section must be
executed by the appropriate officers of the unit in the name of the

"City (or Town or County) of ____________, Department of
Redevelopment", and must be attested by the appropriate officers of
the unit.
(g) Following the adoption of the resolution authorizing the
issuance of bonds, notes, or warrants under this section, the
redevelopment commission shall certify a copy of that resolution to
the officers of the unit who have duties with respect to bonds, notes,
or warrants of the unit. At the proper time, the commission shall
deliver to the officers the unexecuted bonds, notes, or warrants
prepared for execution in accordance with the resolution.
(h) All bonds, notes, or warrants issued under this section shall be
sold by the officers of the unit who have duties with respect to the
sale of bonds, notes, or warrants of the unit. If an officer whose
signature appears on any bonds, notes, or warrants issued under this
section leaves office before their delivery, the signature remains
valid and sufficient for all purposes as if the officer had remained in
office until the delivery.
(i) If at any time during the life of a loan contract or agreement
under this section the redevelopment commission can obtain loans
for the purposes of this section from sources other than the federal
government at interest rates not less favorable than provided in the
loan contract or agreement, and if the loan contract or agreement so
permits, the commission may do so and may pledge the loan contract
and any rights under that contract as security for the repayment of the
loans obtained from other sources. Any loan under this subsection
may be evidenced by bonds, notes, or warrants issued and secured in
the same manner as provided in this section for loans from the
federal government. These bonds, notes, or warrants may be sold at
either public or private sale, as the commission considers
appropriate.
(j) Money obtained from the federal government or from other
sources under this section, and money that is required by a contract
or agreement under this section to be used for project expenditure
purposes, repayment of survey and planning advances, or repayment
of temporary or definitive loans, may be expended by the
redevelopment commission without regard to any law pertaining to
the making and approval of budgets, appropriations, and
expenditures.
(k) Bonds, notes, or warrants issued under this section are
declared to be issued for an essential public and governmental
purpose.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.154-2006,
SEC.71; P.L.146-2008, SEC.737.

federal aid
Sec. 36. (a) In addition to all of the other powers, authority, and
jurisdiction of a redevelopment commission operating under this
chapter, a commission may undertake a neighborhood development
program. A neighborhood development program may include one (1)
or more contiguous or noncontiguous areas needing redevelopment.
These areas may include redevelopment project areas or urban
renewal project areas.
(b) Whenever the redevelopment commission finds that any area
in the territory under their jurisdiction is an area needing
redevelopment to an extent that cannot be corrected by regulatory
processes or by the ordinary operations of private enterprise without
resort to the provisions of this chapter, and that the public health and
welfare would be benefited by the redevelopment or urban renewal
of that area under this chapter, the commission shall prepare a
description and map showing the boundaries of the area to be
included in the neighborhood development program.
(c) After preparation of the description and map under subsection
(b), the redevelopment commission shall adopt a resolution
declaring, confirming, and delineating the general boundaries of the
area and of the parts of that area that are to be designated as
redevelopment project areas or urban renewal areas. However, an
area may not be designated as a redevelopment project area or urban
renewal area unless the required appraisals, maps, plats and plans
have been prepared and all other requirements of this chapter are
met.
(d) Areas designated as redevelopment project areas or urban
renewal areas under this section are considered to be redevelopment
project areas or urban renewal areas for all purposes of this chapter.
Areas within the neighborhood development program area that are
not so designated are not considered to be redevelopment project
areas or urban renewal areas until designated as such by an
amendment to the neighborhood development plan, adopted in the
same manner and with the same procedure as a declaratory and
confirmatory resolution declaring an area a redevelopment project
area or urban renewal area.
(e) The redevelopment commission may make studies, appraisals,
maps, plats, and plans of areas within the neighborhood development
program area that have not been designated as redevelopment project
areas or urban renewal project areas. However, the commission may
not acquire any land in those areas until the neighborhood
development plan has been amended to designate that land as a part
of an urban renewal or redevelopment project area.
(f) The redevelopment commission may amend the neighborhood
development plan, in the manner prescribed by subsection (d), to
include additional areas in the neighborhood development program
areas, either generally or as urban renewal or redevelopment project
areas.
(g) The redevelopment commission may apply for and accept
advances, loans, grants, contributions, and any other forms of

financial assistance from the federal government, may contract with
the federal government for any costs arising from a neighborhood
development program, or may otherwise contract with the federal
government concerning a neighborhood development program, to the
same extent as they may for urban renewal project areas.As added by Acts 1981, P.L.309, SEC.33. Amended by P.L.185-2005,
SEC.21.

IC 36-7-14-37 Redevelopment districts and departments; tax exemptions
Sec. 37. (a) Real property acquired by the redevelopment district
is exempt from taxation while owned by the district.
(b) All receipts of the department of redevelopment, including
receipts from the sale of real property, personal property, and
materials disposed of, are exempt from all taxes.
(c) All other property of the department of redevelopment is
exempt from taxation.As added by Acts 1981, P.L.309, SEC.33. Amended by
P.L.192-2002(ss), SEC.176.

IC 36-7-14-39 Version a Distribution and allocation of taxes
Note: This version of section effective until 1-1-2010. See also
following version of this section, effective 1-1-2010.
Sec. 39. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution
and allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding
the effective date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local
government finance, as finally determined for any
assessment date after the effective date of the allocation
provision.
(2) If an allocation provision is adopted after June 30, 1997, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:

(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding
the effective date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local
government finance, as finally determined for any
assessment date after the effective date of the allocation
provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is
included in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective
date of the allocation provision adopted after June 30, 1997, as
adjusted under subsection (h).
(4) Except as provided in subdivision (5), for all other
allocation areas, the net assessed value of all the property as
finally determined for the assessment date immediately
preceding the effective date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic
development area before July 1, 1995, is expanded after June
30, 1995, the definition in subdivision (1) applies to the
expanded part of the area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include
within the definition of property taxes taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of
eight (8) years, the commission may by resolution determine the
percentage of taxes imposed under IC 6-1.1 on all depreciable
personal property that will be included within the definition of
property taxes. However, the percentage included must not exceed
twenty-five percent (25%) of the taxes imposed under IC 6-1.1 on all
depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this
chapter on or before the allocation deadline determined under

subsection (i) may include a provision with respect to the allocation
and distribution of property taxes for the purposes and in the manner
provided in this section. A declaratory resolution previously adopted
may include an allocation provision by the amendment of that
declaratory resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30,
1995, must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which
the allocation provision is established. For an allocation area
established after June 30, 2008, the expiration date may not be more
than twenty-five (25) years after the date on which the allocation
provision is established. However, with respect to bonds or other
obligations that were issued before July 1, 2008, if any of the bonds
or other obligations that were scheduled when issued to mature
before the specified expiration date and that are payable only from
allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does
not expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require
that any property taxes subsequently levied by or for the benefit of
any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as
follows:
(1) Except as otherwise provided in this section, the proceeds
of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment
date with respect to which the allocation and distribution is
made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected,
paid into an allocation fund for that allocation area that may be
used by the redevelopment district only to do one (1) or more of
the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are
incurred by the redevelopment district for the purpose of
financing or refinancing the redevelopment of that allocation
area.
(B) Establish, augment, or restore the debt service reserve
for bonds payable solely or in part from allocated tax
proceeds in that allocation area.
(C) Pay the principal of and interest on bonds payable from

allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of
bonds payable solely or in part from allocated tax proceeds
in that allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically
connected to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January
1, 2009, pay all or a part of a property tax replacement credit
to taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in
a taxing district (as defined in IC 6-1.1-1-20) that contains
all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may
not receive a credit under this section and a credit under
section 39.5 of this chapter (before its repeal) in the same
year.
(J) Pay expenses incurred by the redevelopment commission

for local public improvements that are in the allocation area
or serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of
local government finance.
However, the total amount of money spent for this purpose
in any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by
the industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency
project (as defined in IC 36-9-41-1.5) within the unit that
established the redevelopment commission. However,
property tax proceeds may be used under this clause to pay
the costs of carrying out an eligible efficiency project only
if those property tax proceeds exceed the amount necessary
to do the following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds,
and any payments on leases payable under this
subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
The allocation fund may not be used for operating expenses of
the commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the assessed
value of the taxable property in the allocation area for the
most recent assessment date minus the base assessed value,
when multiplied by the estimated tax rate of the allocation
area, will exceed the amount of assessed value needed to
produce the property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).

(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that
the commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is
no excess assessed value that may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing
units the amount, if any, of excess assessed value determined
by the commission. The commission may not authorize an
allocation of assessed value to the respective taxing units
under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2)
or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in
the allocation area that is annexed by any taxing unit after the
effective date of the allocation provision of the declaratory resolution
is the lesser of:
(1) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area,
effective on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all
taxable property in the allocation area, for purposes of tax limitation,
property tax replacement, and formulation of the budget, tax rate, and
tax levy for each political subdivision in which the property is
located is the lesser of:
(1) the assessed value of the property as valued without regard
to this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise
zone created under IC 5-28-15, the unit that designated the allocation
area shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds
under subsection (b)(2) shall establish an allocation fund for the

purposes specified in subsection (b)(2) and a special zone fund. Such
a unit shall, until the end of the enterprise zone phase out period,
deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) for the year. The amount sufficient for purposes
specified in subsection (b)(2) for the year shall be determined based
on the pro rata portion of such current property tax proceeds from the
part of the enterprise zone that is within the allocation area as
compared to all such current property tax proceeds derived from the
allocation area. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(2) shall
establish a special zone fund and deposit all the property tax
proceeds in excess of those described in subsection (b)(1) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) from property located in the enterprise zone. The
unit that creates the special zone fund shall use the fund (based on
the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that
where reference is made in subsection (b)(2) to allocation area it
shall refer for purposes of payments from the special zone fund only
to that part of the allocation area that is also located in the enterprise
zone. Those programs shall reserve at least one-half (1/2) of their
enrollment in any session for residents of the enterprise zone.
(h) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of
this chapter. After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment on the property tax proceeds allocated to the
redevelopment district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance shall adjust the base assessed value one (1) time to neutralize
any effect of the annual adjustment on the property tax proceeds
allocated to the redevelopment district under this section. However,
the adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1, and these adjustments
may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(2) than would otherwise
have been received if the general reassessment or annual adjustment
had not occurred. The department of local government finance may
prescribe procedures for county and township officials to follow to
assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.

(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December
31, 2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation
deadline determined under subdivision (2), the general
assembly may enact a law that:
(A) terminates the automatic extension of allocation
deadlines under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.As added by Acts 1981, P.L.309, SEC.33. Amended by Acts 1981,
P.L.57, SEC.40; Acts 1981, P.L.180, SEC.12; P.L.23-1983, SEC.17;
P.L.72-1983, SEC.5; P.L.9-1986, SEC.9; P.L.393-1987(ss), SEC.4;
P.L.37-1988, SEC.25; P.L.38-1988, SEC.11; P.L.114-1989, SEC.9;
P.L.41-1992, SEC.5; P.L.18-1992, SEC.26; P.L.25-1995, SEC.84;
P.L.85-1995, SEC.40; P.L.255-1997(ss), SEC.15; P.L.90-2002,
SEC.476; P.L.192-2002(ss), SEC.177; P.L.4-2005, SEC.135;
P.L.185-2005, SEC.22; P.L.216-2005, SEC.6; P.L.154-2006,
SEC.72; P.L.146-2008, SEC.738; P.L.88-2009, SEC.13.IC 36-7-14-39 Version b Distribution and allocation of taxes
Note: This version of section effective 1-1-2010. See also
preceding version of this section, effective until 1-1-2010.
Sec. 39. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution
and allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding
the effective date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local
government finance, as finally determined for any
assessment date after the effective date of the allocation
provision.
(2) If an allocation provision is adopted after June 30, 1997, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding

the effective date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local
government finance, as finally determined for any
assessment date after the effective date of the allocation
provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is
included in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective
date of the allocation provision adopted after June 30, 1997, as
adjusted under subsection (h).
(4) Except as provided in subdivision (5), for all other
allocation areas, the net assessed value of all the property as
finally determined for the assessment date immediately
preceding the effective date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic
development area before July 1, 1995, is expanded after June
30, 1995, the definition in subdivision (1) applies to the
expanded part of the area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include
within the definition of property taxes taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of
eight (8) years, the commission may by resolution determine the
percentage of taxes imposed under IC 6-1.1 on all depreciable
personal property that will be included within the definition of
property taxes. However, the percentage included must not exceed
twenty-five percent (25%) of the taxes imposed under IC 6-1.1 on all
depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this
chapter on or before the allocation deadline determined under
subsection (i) may include a provision with respect to the allocation
and distribution of property taxes for the purposes and in the manner

provided in this section. A declaratory resolution previously adopted
may include an allocation provision by the amendment of that
declaratory resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30,
1995, must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which
the allocation provision is established. For an allocation area
established after June 30, 2008, the expiration date may not be more
than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or
lease rentals on leases payable from tax increment revenues.
However, with respect to bonds or other obligations that were issued
before July 1, 2008, if any of the bonds or other obligations that were
scheduled when issued to mature before the specified expiration date
and that are payable only from allocated tax proceeds with respect to
the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
provision must require that any property taxes subsequently levied
by or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds
of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment
date with respect to which the allocation and distribution is
made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected,
paid into an allocation fund for that allocation area that may be
used by the redevelopment district only to do one (1) or more of
the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are
incurred by the redevelopment district for the purpose of
financing or refinancing the redevelopment of that allocation
area.
(B) Establish, augment, or restore the debt service reserve
for bonds payable solely or in part from allocated tax
proceeds in that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the

special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of
bonds payable solely or in part from allocated tax proceeds
in that allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically
connected to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January
1, 2009, pay all or a part of a property tax replacement credit
to taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in
a taxing district (as defined in IC 6-1.1-1-20) that contains
all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may
not receive a credit under this section and a credit under
section 39.5 of this chapter (before its repeal) in the same
year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area

or serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of
local government finance.
However, the total amount of money spent for this purpose
in any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by
the industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency
project (as defined in IC 36-9-41-1.5) within the unit that
established the redevelopment commission. However,
property tax proceeds may be used under this clause to pay
the costs of carrying out an eligible efficiency project only
if those property tax proceeds exceed the amount necessary
to do the following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds,
and any payments on leases payable under this
subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
The allocation fund may not be used for operating expenses of
the commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the assessed
value of the taxable property in the allocation area for the
most recent assessment date minus the base assessed value,
when multiplied by the estimated tax rate of the allocation
area, will exceed the amount of assessed value needed to
produce the property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Provide a written notice to the county auditor, the fiscal

body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that
the commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is
no excess assessed value that may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing
units the amount, if any, of excess assessed value determined
by the commission. The commission may not authorize an
allocation of assessed value to the respective taxing units
under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2)
or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in
the allocation area that is annexed by any taxing unit after the
effective date of the allocation provision of the declaratory resolution
is the lesser of:
(1) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area,
effective on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all
taxable property in the allocation area, for purposes of tax limitation,
property tax replacement, and formulation of the budget, tax rate, and
tax levy for each political subdivision in which the property is
located is the lesser of:
(1) the assessed value of the property as valued without regard
to this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise
zone created under IC 5-28-15, the unit that designated the allocation
area shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds
under subsection (b)(2) shall establish an allocation fund for the
purposes specified in subsection (b)(2) and a special zone fund. Such

a unit shall, until the end of the enterprise zone phase out period,
deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) for the year. The amount sufficient for purposes
specified in subsection (b)(2) for the year shall be determined based
on the pro rata portion of such current property tax proceeds from the
part of the enterprise zone that is within the allocation area as
compared to all such current property tax proceeds derived from the
allocation area. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(2) shall
establish a special zone fund and deposit all the property tax
proceeds in excess of those described in subsection (b)(1) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) from property located in the enterprise zone. The
unit that creates the special zone fund shall use the fund (based on
the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that
where reference is made in subsection (b)(2) to allocation area it
shall refer for purposes of payments from the special zone fund only
to that part of the allocation area that is also located in the enterprise
zone. Those programs shall reserve at least one-half (1/2) of their
enrollment in any session for residents of the enterprise zone.
(h) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of
this chapter. After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment on the property tax proceeds allocated to the
redevelopment district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance shall adjust the base assessed value one (1) time to neutralize
any effect of the annual adjustment on the property tax proceeds
allocated to the redevelopment district under this section. However,
the adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1, and these adjustments
may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(2) than would otherwise
have been received if the general reassessment or annual adjustment
had not occurred. The department of local government finance may
prescribe procedures for county and township officials to follow to
assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and

IC 36-7-14-39.2 Designated taxpayer; modification of definition of property taxes;
allocation provision of declaratory resolution
Sec. 39.2. (a) This section applies to a county having a population
of more than two hundred thousand (200,000) but less than three
hundred thousand (300,000).
(b) As used in this section, "designated taxpayer" means any
taxpayer designated by the commission in a declaratory resolution
adopted or amended under section 15 or 17.5 of this chapter and with
respect to which the commission finds that taxes to be derived from
the taxpayer's depreciable personal property in the allocation area, in
excess of the taxes attributable to the base assessed value of that
personal property, are reasonably expected to exceed in one (1) or
more future years the taxes to be derived from the taxpayer's real
property in the allocation area in excess of the taxes attributable to
the base assessed value of that real property.
(c) The allocation provision of a declaratory resolution may
modify the definition of "property taxes" under section 39(a) of this
chapter to include taxes imposed under IC 6-1.1 on the depreciable
personal property of designated taxpayers, in accordance with the
procedures and limitations set forth in this section and section 39 of
this chapter. If such a modification is included in the resolution for
purposes of section 39 of this chapter, the term "base assessed value"
with respect to the depreciable personal property of designated

taxpayers means the net assessed value of all the depreciable
personal property as finally determined for the assessment date
immediately preceding:
(1) the effective date of the modification, for modifications
adopted before July 1, 1995; and
(2) the adoption date of the modification for modifications
adopted after June 30, 1995;
as adjusted under section 39(h) of this chapter.As added by P.L.170-1990, SEC.3. Amended by P.L.12-1992,
SEC.170; P.L.25-1995, SEC.85.

IC 36-7-14-39.3 Definitions
Sec. 39.3. (a) As used in this section, "depreciable personal
property" refers to:
(1) all of the designated taxpayer's depreciable personal
property that is located in the allocation area; and
(2) all other depreciable property located and taxable on the
designated taxpayer's site of operations within the allocation
area.
(b) As used in this section, "designated taxpayer" means any
taxpayer designated by the commission in a declaratory resolution
adopted or amended under section 15 or 17.5 of this chapter, and
with respect to which the commission finds that taxes to be derived
from the depreciable personal property in the allocation area, in
excess of the taxes attributable to the base assessed value of that
personal property, are needed to pay debt service or to provide
security for bonds issued under section 25.1 of this chapter or to
make payments or to provide security on leases payable under
section 25.2 of this chapter in order to provide local public
improvements for a particular allocation area. However, a
commission may not designate a taxpayer after June 30, 1992, unless
the commission also finds that:
(1) the taxpayer's property in the allocation area will consist
primarily of industrial, manufacturing, warehousing, research
and development, processing, distribution, or transportation
related projects; and
(2) the taxpayer's property in the allocation area will not consist
primarily of retail, commercial, or residential projects.
(c) The allocation provision of a declaratory resolution may
modify the definition of "property taxes" under section 39(a) of this
chapter to include taxes imposed under IC 6-1.1 on the depreciable
personal property located and taxable on the site of operations of the
designated taxpayers in accordance with the procedures and
limitations set forth in this section and section 39 of this chapter. If
such a modification is included in the resolution, for purposes of
section 39 of this chapter the term "base assessed value" with respect
to the depreciable personal property means the net assessed value of
all the depreciable personal property as finally determined for the
assessment date immediately preceding:

(1) the effective date of the modification, for modifications
adopted before July 1, 1995; and
(2) the adoption date of the modification for modifications
adopted after June 30, 1995;
as adjusted under section 39(h) of this chapter.As added by P.L.35-1990, SEC.59. Amended by P.L.147-1992,
SEC.1; P.L.41-1992, SEC.6; P.L.1-1993, SEC.244; P.L.19-1994,
SEC.17; P.L.25-1995, SEC.86.

IC 36-7-14-40 Violations; penalties
Sec. 40. A person who knowingly:
(1) applies any money raised under this chapter to any purpose
other than those permitted by this chapter; or
(2) fails to follow the voucher and warrant procedure prescribed
by this chapter in expending any money raised under this
chapter;
commits a Class C felony.As added by Acts 1981, P.L.309, SEC.33.

IC 36-7-14-41 Economic development area; determination; enlargement
Sec. 41. (a) The commission may, by following the procedures set
forth in sections 15 through 17 of this chapter, approve a plan for and
determine that a geographic area in the redevelopment district is an
economic development area. Designation of an economic
development area is subject to judicial review in the manner
prescribed in section 18 of this chapter.
(b) The commission may determine that a geographic area is an
economic development area if it finds that:
(1) the plan for the economic development area:
(A) promotes significant opportunities for the gainful
employment of its citizens;
(B) attracts a major new business enterprise to the unit;
(C) retains or expands a significant business enterprise
existing in the boundaries of the unit; or
(D) meets other purposes of this section and sections 2.5 and
43 of this chapter;
(2) the plan for the economic development area cannot be
achieved by regulatory processes or by the ordinary operation
of private enterprise without resort to the powers allowed under
this section and sections 2.5 and 43 of this chapter because of:
(A) lack of local public improvement;
(B) existence of improvements or conditions that lower the
value of the land below that of nearby land;
(C) multiple ownership of land; or

(D) other similar conditions;
(3) the public health and welfare will be benefited by
accomplishment of the plan for the economic development area;
(4) the accomplishment of the plan for the economic
development area will be a public utility and benefit as
measured by:
(A) the attraction or retention of permanent jobs;
(B) an increase in the property tax base;
(C) improved diversity of the economic base; or
(D) other similar public benefits; and
(5) the plan for the economic development area conforms to
other development and redevelopment plans for the unit.
(c) The determination that a geographic area is an economic
development area must be approved by the unit's legislative body.
The approval may be given either before or after judicial review is
requested. The requirement that the unit's legislative body approve
economic development areas does not prevent the commission from
amending the plan for the economic development area. However, the
enlargement of any boundary in the economic development area must
be approved by the unit's legislative body, and a boundary may not
be enlarged unless:
(1) the existing area does not generate sufficient revenue to
meet the financial obligations of the original project; or
(2) the Indiana economic development corporation has, in the
manner provided by section 15(f) of this chapter, made a
finding approving the enlargement of the boundary.As added by P.L.380-1987(ss), SEC.16 and P.L.393-1987(ss), SEC.5.
Amended by P.L.114-1989, SEC.11; P.L.146-2008, SEC.739.

IC 36-7-14-43 Rights, powers, privileges, and immunities exercisable by
commission in economic development area; conditions
Sec. 43. (a) All of the rights, powers, privileges, and immunities
that may be exercised by the commission in a redevelopment project
area or urban renewal area may be exercised by the commission in
an economic development area, subject to the following:
(1) The content and manner of exercise of these rights, powers,
privileges, and immunities shall be determined by the purposes
and nature of an economic development area.
(2) Real property (or interests in real property) relative to which
action is taken in an economic development area is not required
to meet the conditions described in IC 36-7-1-3.
(3) The special tax levied in accordance with section 27 of this
chapter may be used to carry out activities under this chapter in
economic development areas.
(4) Bonds may be issued in accordance with section 25.1 of this

chapter to defray expenses of carrying out activities under this
chapter in economic development areas if no other revenue
sources are available for this purpose.
(5) The tax exemptions set forth in section 37 of this chapter are
applicable in economic development areas.
(6) An economic development area may be an allocation area
for the purposes of distribution and allocation of property taxes.
(7) The commission may not use its power of eminent domain
under section 20 of this chapter to carry out activities under this
chapter in an economic development area.
(b) The content and manner of discharge of duties set forth in
section 11 of this chapter shall be determined by the purposes and
nature of an economic development area.As added by P.L.192-1988, SEC.2. Amended by P.L.185-2005,
SEC.23; P.L.146-2008, SEC.740.

IC 36-7-14-44 Military base reuse area
Sec. 44. A redevelopment project area, an urban renewal area, or
an economic development area established under this chapter may
not include any land that constitutes part of a military base reuse area
established under IC 36-7-30.As added by P.L.26-1995, SEC.2. Amended by P.L.185-2005,
SEC.24.

IC 36-7-14-44.2 Quadrennial fiscal analysis; report
Sec. 44.2. On a quadrennial basis, the general assembly shall
provide for an evaluation of the provisions of this chapter, giving
first priority to using the Indiana economic development corporation
established under IC 5-28-3. The evaluation shall be a fiscal analysis,
including an assessment of the effectiveness of the provisions of this
chapter to:
(1) create new jobs;
(2) increase income; and
(3) increase the tax base;
in the jurisdiction of the unit. The fiscal analysis may also consider
impacts on tax burdens borne by property owners. The fiscal analysis
may also include a review of the practices and experiences of other
states or political subdivisions with laws similar to the provisions of
this chapter. The Indiana economic development corporation
established under IC 5-28-3 or another person or entity designated by
the general assembly shall submit a report on the evaluation to the
governor, the president pro tempore of the senate, and the speaker of
the house of representatives before December 1, 1999, and every
fourth year thereafter. The report submitted to the president pro
tempore of the senate and the speaker of the house of representatives
must be in an electronic format under IC 5-14-6.As added by P.L.25-1995, SEC.87. Amended by P.L.4-2005,
SEC.136.

IC 36-7-14-45 Establishment of program for housing; notices; conditions
Sec. 45. (a) The commission may establish a program for housing
by resolution. The program, which may include any relevant
elements the commission considers appropriate, may be adopted as
part of a redevelopment plan or amendment to a redevelopment plan,
and must establish an allocation area for purposes of sections 39 and
48 of this chapter for the accomplishment of the program. The
program must be approved by the municipal legislative body or
county executive as specified in section 17 of this chapter.
(b) The notice and hearing provisions of sections 17 and 17.5 of
this chapter, including notice under section 17(c) of this chapter to
a taxing unit that is wholly or partly located within an allocation
area, apply to the resolution adopted under subsection (a). Judicial
review of the resolution may be made under section 18 of this
chapter.
(c) Before formal submission of any housing program to the
commission, the department of redevelopment:
(1) shall consult with persons interested in or affected by the
proposed program;
(2) shall provide the affected neighborhood associations,
residents, and township assessors with an adequate opportunity
to participate in an advisory role in planning, implementing, and
evaluating the proposed program; and
(3) shall hold public meetings in the affected neighborhood to
obtain the views of neighborhood associations and residents.As added by P.L.154-2006, SEC.73.

IC 36-7-14-46 Commission authority in program for housing
Sec. 46. (a) Except as provided in subsection (b), all the rights,
powers, privileges, and immunities that may be exercised by the
commission in blighted, deteriorated, or deteriorating areas may be
exercised by the commission in implementing its program for
housing, including the following:
(1) The special tax levied in accordance with section 27 of this
chapter may be used to accomplish the housing program.
(2) Bonds may be issued under this chapter to accomplish the
housing program, but only one (1) issue of bonds may be issued
and payable from increments in any allocation area except for
refunding bonds or bonds issued in an amount necessary to
complete a housing program for which bonds were previously
issued.
(3) Leases may be entered into under this chapter to accomplish
the housing program.
(4) The tax exemptions set forth in section 37 of this chapter are
applicable.
(5) Property taxes may be allocated under section 39 of this
chapter.
(b) A commission may not exercise the power of eminent domain

in implementing its program for housing.As added by P.L.154-2006, SEC.74.

IC 36-7-14-47 Commission findings required; contents
Sec. 47. The commission must make the following findings in the
resolution adopting a housing program under section 45 of this
chapter:
(1) Not more than twenty-five (25) acres of the area included in
the allocation area has been annexed during the preceding five
(5) years.
(2) No area within the allocation area has been annexed within
the preceding five (5) years over a remonstrance of a majority
of the owners of land within the annexed area.
(3) The program cannot be accomplished by regulatory
processes or by the ordinary operation of private enterprise
because of:
(A) the lack of public improvements;
(B) the existence of improvements or conditions that lower
the value of the land below that of nearby land; or
(C) other similar conditions.
(4) The public health and welfare will be benefited by
accomplishment of the program.
(5) The accomplishment of the program will be of public utility
and benefit as measured by:
(A) the provision of adequate housing for low and moderate
income persons;
(B) an increase in the property tax base; or
(C) other similar public benefits.
(6) At least one-third (1/3) of the parcels in the allocation area
established by the program are vacant.
(7) At least seventy-five percent (75%) of the allocation area is
used for residential purposes or is planned to be used for
residential purposes.
(8) At least one-third (1/3) of the residential units in the
allocation area were constructed before 1941.
(9) At least one-third (1/3) of the parcels in the allocation area
have at least one (1) of the following characteristics:
(A) The dwelling unit on the parcel is not permanently
occupied.
(B) The parcel is the subject of a governmental order, issued
under a statute or an ordinance, requiring the correction of
a housing code violation or unsafe building condition.
(C) Two (2) or more property tax payments on the parcel are
delinquent.
(D) The parcel is owned by local, state, or federal
government.
(10) The total area within the county or municipality that is
included in any allocation area established for a housing
program under section 45 of this chapter does not exceed one

hundred fifty (150) acres.As added by P.L.154-2006, SEC.75.

IC 36-7-14-48 Allocation of property taxes; fund; use; credit calculation;
limitation on distribution of fund
Sec. 48. (a) Notwithstanding section 39(a) of this chapter, with
respect to the allocation and distribution of property taxes for the
accomplishment of a program adopted under section 45 of this
chapter, "base assessed value" means the net assessed value of all of
the property, other than personal property, as finally determined for
the assessment date immediately preceding the effective date of the
allocation provision, as adjusted under section 39(h) of this chapter.
(b) The allocation fund established under section 39(b) of this
chapter for the allocation area for a program adopted under section
45 of this chapter may be used only for purposes related to the
accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units
within the allocation area.
(2) The construction, reconstruction, or repair of any
infrastructure (including streets, sidewalks, and sewers) within
or serving the allocation area.
(3) The acquisition of real property and interests in real
property within the allocation area.
(4) The demolition of real property within the allocation area.
(5) The provision of financial assistance to enable individuals
and families to purchase or lease residential units within the
allocation area. However, financial assistance may be provided
only to those individuals and families whose income is at or
below the county's median income for individuals and families,
respectively.
(6) The provision of financial assistance to neighborhood
development corporations to permit them to provide financial
assistance for the purposes described in subdivision (5).
(7) For property taxes first due and payable before January 1,
2009, providing each taxpayer in the allocation area a credit for
property tax replacement as determined under subsections (c)
and (d). However, the commission may provide this credit only
if the municipal legislative body (in the case of a redevelopment
commission established by a municipality) or the county
executive (in the case of a redevelopment commission
established by a county) establishes the credit by ordinance
adopted in the year before the year in which the credit is
provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 45
of this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)

through IC 6-1.1-21-2(g)(5) (before their repeal) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) (before its
repeal) for that year as determined under IC 6-1.1-21-4(a)(1)
(before its repeal) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
its repeal) levied in the taxing district allocated to the
allocation fund, including the amount that would have been
allocated but for the credit.
(d) The commission may determine to grant to taxpayers in an
allocation area from its allocation fund a credit under this section, as
calculated under subsection (c). Except as provided in subsection (g),
one-half (1/2) of the credit shall be applied to each installment of
taxes (as defined in IC 6-1.1-21-2) (before its repeal) that under
IC 6-1.1-22-9 are due and payable in a year. The commission must
provide for the credit annually by a resolution and must find in the
resolution the following:
(1) That the money to be collected and deposited in the
allocation fund, based upon historical collection rates, after
granting the credit will equal the amounts payable for
contractual obligations from the fund, plus ten percent (10%) of
those amounts.
(2) If bonds payable from the fund are outstanding, that there is
a debt service reserve for the bonds that at least equals the
amount of the credit to be granted.
(3) If bonds of a lessor under section 25.2 of this chapter or
under IC 36-1-10 are outstanding and if lease rentals are
payable from the fund, that there is a debt service reserve for
those bonds that at least equals the amount of the credit to be
granted.
If the tax increment is insufficient to grant the credit in full, the
commission may grant the credit in part, prorated among all
taxpayers.
(e) Notwithstanding section 39(b) of this chapter, the allocation
fund established under section 39(b) of this chapter for the allocation
area for a program adopted under section 45 of this chapter may only
be used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in
section 39(b)(2)(A) through 39(b)(2)(H) and 39(b)(2)(J) of this
chapter for property that is residential in nature.
(2) Reimburse the county or municipality for expenditures made
by the county or municipality in order to accomplish the
housing program in that allocation area.
The allocation fund may not be used for operating expenses of the
commission.

(f) Notwithstanding section 39(b) of this chapter, the commission
shall, relative to the allocation fund established under section 39(b)
of this chapter for an allocation area for a program adopted under
section 45 of this chapter, do the following before July 15 of each
year:
(1) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most recent
assessment date minus the base assessed value, when multiplied
by the estimated tax rate of the allocation area, will exceed the
amount of assessed value needed to produce the property taxes
necessary:
(A) to make, when due, principal and interest payments on
bonds described in section 39(b)(2) of this chapter;
(B) to pay the amount necessary for other purposes
described in section 39(b)(2) of this chapter; and
(C) to reimburse the county or municipality for anticipated
expenditures described in subsection (e)(2).
(2) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly or
partly located within the allocation area. The notice must:
(A) state the amount, if any, of excess property taxes that the
commission has determined may be paid to the respective
taxing units in the manner prescribed in section 39(b)(1) of
this chapter; or
(B) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission.
(g) This subsection applies to an allocation area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance is not included in the base assessed value. If property tax
installments with respect to a homestead (as defined in
IC 6-1.1-12-37) are due in installments established by the department
of local government finance under IC 6-1.1-22-9.5, each taxpayer
subject to those installments in an allocation area is entitled to an
additional credit under subsection (d) for the taxes (as defined in
IC 6-1.1-21-2) (before its repeal) due in installments. The credit shall
be applied in the same proportion to each installment of taxes (as
defined in IC 6-1.1-21-2) (before its repeal).As added by P.L.154-2006, SEC.76. Amended by P.L.219-2007,
SEC.126; P.L.146-2008, SEC.741; P.L.1-2009, SEC.165.